Retail sale of medicines could raise prices, employers warn

The Employers’ Association says allowing general stores to sell over-the-counter medicines could weaken pharmacies and raise drug prices, according to mbl.is. The association opposes a bill that would permit such sales and has urged Parliament to reject it.

In a submission to Parliament’s welfare committee, the association’s pharmaceutical group warned that the change could also increase distribution costs and undermine pharmacy branches in rural communities.

Viðreisn MP Ingvar Þóroddsson is the bill’s lead sponsor. Its supporters say allowing more retailers to sell the medicines could increase competition, lower prices and improve service. They also argue that the change could help stores in sparsely populated areas.

The association argues that general stores would focus on the best-selling and most profitable over-the-counter medicines, while pharmacies would still have to cover fixed costs for trained staff, equipment and stock. Many pharmacy branches in small communities rely on income from over-the-counter sales, it says. If that business moves elsewhere, some branches could be forced to close, reducing residents’ access to prescription medicines.

The association also says more sales outlets would not necessarily improve healthcare. Pharmacies provide professional advice on medicines, which it says staff in general stores lack the training and working conditions to offer.

Under the bill, over-the-counter medicines could not be available for customers to select themselves outside pharmacies without permission from the Medicines Agency. The health minister would also be able to set rules on the quantities sold to an individual over a given period, the medicines’ strength and storage, and the minimum age of sales staff.

The bill’s explanatory notes say the Medicines Agency can already exempt general stores from the rules to sell specific over-the-counter medicines in places without a pharmacy or pharmacy branch. The bill would generally allow sales outside pharmacies, subject to its restrictions.