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Pharmacy Acquisition Costs in Songkhla Province

Somsak Leelang, Surachat N. Prince of songkla University


November 2013
Abstract
Objective: To examine pharmacy majority of drugs at the same median prices. On
acquisition costs among community pharmacies in the other hands, older and longer opening-hours
Songkhla Province and to compare them with pharmacies could purchase at lower median prices
wholesale prices. Methods: Drug acquisition costs for their majority of drugs. Similarly, pharmacies
were collected by copying their receipts of a that had lower turn-over rate stocks could obtain
period of seven months. Also, drug price the majority of drugs at lower costs. There were
quotations were retrieved from wholesalers. six pharmacies that could purchase drugs at lower
Studied drugs included all dosage forms. Unit acquisition costs, even though the obtained
price of those drugs were calculated. Descriptive amounts were either lower or equal to those of
analyses, including frequency counting, median costs. Results also showed that one
percentage, mean, median, mode, and standard wholesaler offered drugs at median price while
deviation, were conducted. Results: Results other four Wholesalers sold drugs at price lower
showed that only 12 (6.7%) pharmacies were than median prices. When pharmacy acquisition
willing to participate in the study. The majority of costs were compared to wholesale median prices,
these pharmacies (83.83%) bought drugs from results showed that nine pharmacies could obtain
wholesalers. Acquisition costs were composed of drugs at lower than median prices and three
two types, including actual purchasing costs and pharmacies could purchase at the price lower than
wholesalers offered costs. All pharmacies could wholesale prices (with same trade names)
use them as reference costs when they purchase Conclusion: Pharmacy acquisition costs could be
those drugs. From the comparison of drug obtained and used as reference prices when drugs
acquisition costs and median prices, results were purchased.
showed that nine pharmacies could obtain the
majority of drugs at acquisition costs equal to the Keywords: acquisition costs, wholesalers offered
median prices. Pharmacies at different locations costs, median prices, reference prices
and with different ownerships could still obtain the

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Introduction medicines (acquisition costs) are. The volume of
orders per vendor vendors, etc. (6) differences in
Pharmacy is a Health Services in Primary drug costs is one problem that entrepreneurs
Care Health System Thailand is a close pharmacies found during the operation.
community. And is often the first choice of the In a effort to collect cost of hospital
people, especially when the initial illness. medicine by exploring drug prices then prepared
Thailand currently share a modern medicine man for use as a reference source of information on
for a second type is a modern drug (b a. 1), which selected medicines. Drug procurement For
requires pharmacists to comply with a specified hospitals or departments of State Health Services
time. And non-packaged drugs, dangerous drugs (7) the study on the cost of medicines in
or controlled substance (b a. 2) (1) in the year pharmacies. The study found the United States
2548 to 2555 found that the trend of market share, The style health insurance system in the United
or distribution of drugs through pharmacies. down States are paid back to the participating pharmacy
from 25 percent to 23 percent of all medications or a health insurance company in terms of cost
(2) at the same time found that the tendency of the medicines that are dispensed to patients by
drug has increased across the country from the prescription. Cost is determined. The estimated
number 13 329 of the 15 864 (3) and has turned up cost of the drug (estimated acquisition cost), which
at the shop. monotherapy with either drug store is calculated from a survey of wholesalers is the
chain owned by a foreign company, and Thailand. average selling price of the wholesaler (average
The competition in the business model is more wholesale prices) - 10.5% (8), but this makes the
serious. cost of medicines. the state refund is higher than
Potentially make a huge impact in the the actual purchase price of the drug. Since
long term to operate a single dose (4) Therefore, September 2011 the government changed the way
the administration of a single dose to achieve the it's a true drug cost (actual acquisition cost) from a
goal. Help may be on the administration. The participating pharmacy and then set a reference
theory of marketing mix (Marketing Mix: 4Ps), price for the reimbursement to pharmacies. Also
which include (Product) at (Place), promotion important in determining the disbursement.
(Promotion) Price (Price) (5) found that the cost of

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However, the country still can not find a report on date at the time of the study. In this research to
the cost of medicines in the private sector before. study a modern drug (b a. 1) in Songkhla. Without
The information is important, as mentioned above. education in modern medicine, especially
The researcher is interested in the cost of medicine packaged non-dangerous drug or
medicines in pharmacies. However, due to controlled substance (b a. 2) as a modern drug (b
resource constraints and to provide benefits to the a. 1), a drug that is more diverse. The researchers
drug store in Songkhla for bringing drugs to the then collected data only in drug stores such types
actual cost. The researchers chose to study and selection criteria sample drug stores that have
pharmacy located in Songkhla. It has modern a pharmacy medicine (b a. 1) with a single dose
medicine (b a. 1), 263 (3) and the procurement of (stand alone) who are willing to join in. study
pharmaceutical drugs from the manufacturer or respondents And if found to be a drug dealer or
wholesaler. However, no research or any agency wholesaler would be eliminated from the study.
that collects data analysis or cost this drug before. The researchers sent letters to modern
Thus, research. "Cost of medications in drug stores drug store (the unit. 1) that meet the selection
offense" in order to benefit the drugstore operator criteria, primarily in Songkhla for every
to provide a basis for the reference price as a tool participant. The goal of the pharmacies that accept
to negotiate drug prices. To lead to lower drug the participant with the largest number. Then the
costs and pricing for the next. researcher back to the respondents participated in
the study. For storage of drugs in all forms of drug
administration. The Minister by the Medicines Act
Research Methods 2510 (Act No. 5 of 2530 drug), which contain
dangerous drugs, controlled drugs. Medicine pills
This research is a descriptive study packaged drugs for external use and drug use only.
(descriptive study) studied drug derived cost Because these drugs can be sold in modern
(acquisition costs) of the drug in Songkhla and medicine (the unit. 1) and a variety of products.
compare the offer price to the wholesaler Gives comprehensive information By requesting a
company. This retrospective survey data from July copy of a photograph showing the drug's cost,
2555 until January 2556 in order to keep a including waybill. Receipt Or the price of other
sufficient amount of information and data is up to forms of the drug stores have been supplied with

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drugs. In addition, this study also collected day. The last price is a price that reflects the actual
information from all companies offering prices the most current. The list of drugs that are
prescription drug wholesalers in Songkhla. By supplied by the POA in the confirmation. It is
asking for a confirmation in the form of an original costing the basis of the total amount of the
or copy data files electronically. purchase price and the amount received from the
Then the researchers recorded data onto a giveaway. Similarly, the cost of the drug
recordable design data is a record of sorts as wholesaler company that has collected in the same
pharmacy pharmacy pharmacy size (number of period. It will use the same criteria to the cost of
units) location of the operator. Apothecary shop prescription drugs in the calculation of unit prices.
name During the operations, Circulation period of The research was based on data analysis
the drug inventory And data entry costs by by descriptive statistics (descriptive statistics) to
purchasing drugs at pharmacies that contain compare the data of each participating pharmacy
information about. The generic name of the drug research on data from wholesalers include the
name, dosage form manufacturing, trade size, mean, median and mode number of tables, the
price, unit price, number of purchase the seller's standard deviation. The median cost of
name and date of purchase. The generic name of prescription drugs and the cost of each store had
the drug dosage form trade name manufacturers. prepared the reference price of the cost of
Quantity Price Seller's name and the date of the purchasing drugs. It also conducted a cost
bid. comparison drug. The data obtained from
Before analyzing the cost drugs. This pharmacies or procurement of information from
study has been calculated based on the price per the offering price of the drug wholesaler. The way
unit of dosage forms such as tablets for capsules to compare the cost of such drugs to the middle of
are packaged in foil panels. It is calculated as the the two groups. Researchers led median cost of
price per tablet or capsule. Potion or lotion bottle, medications. (Bid or selling drugs) used in the
it is calculated as the price per milliliter. And comparative analysis. The basis of comparison is
pharmaceutical creams or ointments, etc. It is as follows: 1) cost per unit dose. Is less than the
calculated as the price per gram. The data are median 0.01 baht per unit is in comparison with
available individually or purchasing multiple times the less. The median cost of medications, 2) cost
within a period of seven months, it will use the last drugs is equal to the median in all respects (set 2

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decimal) that is in comparison with a value equal pharmacy and medicine procurement of drugs and
to the median cost of medications 3) cost of drugs the cost of two drugs.
per unit is greater than the median 0.01 baht. the
unit is in the group is greater than the median cost Overview of the pharmacy and purchase of
of medications. pharmaceutical drugs.
This study also presents the pharmacy is
divided into different groups by providing Table 1 shows the general information of
information, an overview of the drug stores, the drug research participants. That is a small dose (1
majority of the drugs at cost price of drugs less unit) of 11 shops, a large dose (two units), the
than or equal to the median cost of medications. number one restaurant, with locations spread
Researcher using criteria to determine the drug in throughout the downtown area of six stores, and
the same group. By segmenting an overview From outside of the six store when divided by. own
the list of the most common drugs. Each Found a drug store owner, a pharmacist and is
benchmark that similarly grouped wholesaler will operating its own Number 9 of pharmacy owners,
be divided into different groups by presenting the not pharmacists, but hiring pharmacists who
information as a whole is a wholesaler who mainly practice the 3 shop, considering the period of
sell medicines at cost drug that is less than equal. operation and during opening hours. Find a
or more than the median cost of medications. pharmacy open new operations in the range of less
than or equal to 2 years, with a total of five stores
Result and drug stores that carry more than two years
with a total of seven stores and a pharmacy that
In the study, from modern medicine (b a. opened less than or equal to four. hours per day
1), the selection criteria of 179 stores Letter with a total of five stores due to a drug that
participants were 12 shops and a letter back from pharmacists working in government or other
the pharmacy is not able to send a letter asking for. locations. Then open the pharmacy after work. The
partnership of three stores, or as a response to 6.70 drug, which pharmacists work all day without
percent after the data analysis. The study can be working with a number of other places to shop and
divided into two parts, namely Part 1 Overview of seventh last term when considering the turnover of
pharmaceutical inventory of each drug.

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Table 1. Overview of pharmaceutical research participants (N = 12 outlets).

The nature of the drug store (Number of store).


Types of drug stores
Sales of modern medicine (and b. 1) 12
Pharmacy size
Pharmacy size 1 11
Pharmacy size 2 1
Location
In downtown of Hat Yai. 2
In downtown of Songkhla. 4
Around the outside Sadao District 5
Around outside Na Mom District 1
Ownership
Pharmacist 9
Not pharmacist 3
During the operations
Operations Less than or equal to 2 years 5
Established more than two years 7
Opening Hours
Opening less than four hours a day. 5
Opening more than four hours a day 7
Inventory turnover period of medication
About 1 month 10
About 2 months 2

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Table 2 shows the number of items drug D, pharmacy E, pharmacies F, pharmacy G,
pharmacies participant has purchased drugs from pharmacy K and drug stores L has a number of
the pharmacy of the study is called drug stores and drugs, ranging from 30 to 144 items, representing
12 stores represented as drug A, B, C, D. , E, F, G, the hundreds. 1.49 to 7.16 percent of the total
H, I, J, K and L to prevent drug store to drug store number of drugs from drug stores everywhere. The
media participants. The data showed that the drugs are worth between 21,558 and 113,596 baht,
number of procurement of medicines in from 1.91 percent to 10.05 percent of its medicines
pharmacies participants each are different and can from drug stores everywhere.
be divided into groups by the number of items that
are different is that one is buying. many Also from the data in Table 2 reveals that
medications Which counts more than 300 items to most drug stores participant. Having bought the
the store is a second pharmacy drugstore B and J, drug from a wholesaler in the amount of 1685,
which has a number of drugs from the 311 and representing 83.83 percent of the total number of
326, or 15.47 per cent and 16.22 of the list of all drugs from drug stores everywhere. The drugs are
the medicines from drug stores everywhere. The worth 686,910 baht to 60.81 per cent of the value
value of the drugs is Baht 260,571 and 253,432 or of buying medicines from drug stores everywhere.
23.07 percent and 22.44 percent of its medicines The purchase drugs directly from the
from drug stores everywhere. The second group manufacturers will have only 325 or 16.17 percent
had to buy a moderate amount. Count from 150 to of the total number of drugs from drug stores
300 items in this group were found to have four everywhere. The drugs are worth 442,628 baht,
stores is drug A, drug C, drug stores H and drug accounting for 39.19 percent of the value of
stores I have a number of medications ranging buying medicines from drug stores everywhere.
from 152 to 251 transactions, representing a 7.56 But considering the details of the purchase drugs
percent to 12.49. the list of all the medicines from from wholesalers. It may be a number of different
drug stores everywhere. The drugs are worth buy-out. Divided into groups according to the
between 31,042 to 180,264 baht, from 2.57 percent number of drug wholesalers that sell to drug
to 15.96 percent of its medicines from drug stores stores. The group is one Wholesalers are buying
everywhere. The fourth group to buy less. Which medication that many medications. Counting over
counts more than 150 items to a sixth store is the 300 with one or more of the company Wang

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Pharmacy Pharmaceuticals Optical is valued at between 53,516 to 133,327 baht to buy
Limited. The 1221 list of drugs accounted for drugs or 7.79 percent to 19.41 percent of its total
72.46 percent of the total amount of drugs drug purchases from wholesalers. The third group
purchased from wholesalers. The drugs are worth is the drug wholesalers are buying fewer
471,110 baht or 68.58 percent of the total value of medications. Since fewer than 150 of which have
drugs purchased from wholesalers. The second come down to two things, namely a drug store and
group is a wholesale pharmacy to buy medicine the pharmacist's center. The amount of the drug 24
with a moderate amount. Count from 150 to 300, to 56 percent, 1:43 to 3:33 in the number of all
with two of the pharma company Hoffmann. Ltd., medicines bought from wholesalers. The drugs are
and family medicine The number of drug items worth between 4,460 to 24,497 baht, or 0.65 to
166 to 218 of 9.85 to 12.93 percent of the total 1.43 percent of the value of all medicines bought
amount of drugs purchased from wholesalers. And from wholesalers.

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Table 2 shows the number of drug research participants. Has purchased drugs from various pharmacies.

The number of drug procurement Total transactions Total trading value


DRUG STORES store A store B store C store D store E store F store G store H store I store J store K storeL number percent baht percent
Wholesaler
Phamahof Co., LTD - 161 - - - - 2 - 1 - 2 - 166 8.26 133327 11.80
Wangbhesaj Co., Ltd 187 90 129 113 82 - 75 154 149 1 97 144 1221 60.75 471110 41.71
Krobkruaya 22 - 2 - 1 - 12 - - 181 - - 218 10.85 53516 4.74
Drug center - - - - - - 24 - - - - - 24 1.19 4460 0.39
Soonyabhesaj 36 - - - 18 - - - 1 - 1 - 56 2.79 24497 2.17
Total transactions (number) 245 251 131 113 101 0 113 154 151 182 100 144 1685
(percent) 12.19 12.49 6.52 5.62 5.02 0.00 5.62 7.66 7.51 9.05 4.98 7.16 83.83
Total trading value (THB) 96161 175463 103788 86491 27481 0 21558 31042 34577 43285 22678 44386 686910
(percent) 8.51 15.53 9.19 7.66 2.43 0.00 1.91 2.75 3.06 3.83 2.01 3.93 60.81
pharmaceutical companies
Zuellig Pharma Co., Ltd - - - - 2 15 - - - 18 - - 35 1.74 87413 7.74
DKSH (Thailand) Co., Ltd - - - - - 6 - - - - - - 6 0.30 10384 0.92
TNP Healthcare Co., Ltd - - - - - 3 - - - - - - 3 0.15 1515 0.13
NewLife Pharma Co., Ltd - 18 27 10 - - - - - - - - 55 2.74 65547 5.80
B. Rich (Thailand) Co., Ltd - - - - - - - - - 8 - - 8 0.40 4661 0.41
B L H Trading Co., Ltd - - - - - 3 - - - - - - 3 0.15 2204 0.20
BLHUA Co., Ltd - 4 4 5 - - - - - - - - 13 0.65 39207 3.47
Berlin pharmaceutical Co., Ltd - 9 - - - - - - - - - - 9 0.45 12222 1.08

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The number of drug procurement Total transactions Total trading value
store
DRUG STORES store A store B store C store D store E store F store G H store I store J store K Store L number percent baht percent
Biopharm Co., LTD - 8 - - - - - - 1 - - - 9 0.45 11682 1.03
Paiboonmed Co., LTD - - - - - - - - - 1 - - 1 0.05 220 0.02
Masalab Co., LTD - - - - - - - - - 5 - - 5 0.25 2572 0.23
Millimed Co., LTD - - - - - - - - - 9 - - 9 0.45 23655 2.09
Medline Co., LTD - - - - - - - - - 12 - - 12 0.60 40707 3.60
Medicine supply Co., LTD - 14 35 1 - - - - - 60 - - 110 5.47 86056 7.62
Unison Co., LTD - - - - - - - - - 16 - - 16 0.80 25171 2.23
Umega Co., LTD - - - - - - - - - 2 - - 2 0.10 942 0.08
Lamthong Co., LTD - 7 - - - - - - - - - - 7 0.35 7861 0.70
Vitthayasrom Co., LTD - - - - - 3 - - - - - - 3 0.15 1271 0.11
Sahaphat Co., LTD - - - - - - - - - 11 - - 11 0.55 9635 0.85
FCP Co., LTD - - - - - - - - - 2 - - 2 0.10 5625 0.50
M&H Co., LTD 2 - - - - - - - - - - - 2 0.10 3825 0.34
GPO 4 - - - - - - - - - - - 4 0.20 253 0.02
Total transactions (number) 6 60 66 16 2 30 0 0 1 144 0 0 325
(percent) 0.30 2.99 3.28 0.80 0.10 1.49 0.00 0.00 0.05 7.16 0.00 0.00 16.17
Total trading value (bath) 4078 85108 76476 27105 2580 36234 0 0 900 210147 0 0 442628
(percent) 0.36 7.53 6.77 2.40 0.23 3.21 0.00 0.00 0.08 18.60 0.00 0.00 39.19
Total all transactions 251 311 197 129 103 30 113 154 152 326 100 144 2010 100.00
Total all trading value 100239 260571 180264 113596 30061 36234 21558 31042 35477 253432 22678 44386 1129538 100.00

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Drug Acquisition Costs of drugs is lower than the median a second store is
drug stores B and pharmacy J, which has a number
Cost drugs used in this study used two of drugs, 131 and 126 items or ideas. 42.12 and
groups are one. The data were collected from 38.65 percent of the total number of drugs from
medical costs. Receipts from low-cost generic the pharmacy each. The value of the drugs is Baht
drugs from all of the participants. The summary 107,665 and 129,548 or 41.44 percent and 51.22
details and pricing out the form baht per unit price percent of its medicines from drug stores each.
(price / unit) by bringing information to all. The The second group Pharmacy where most drugs in
table records the cost of drugs purchased at the cost of drugs is the median has nine stores is
pharmacies by generic real strength, dosage form, drug A, drug C, Pharmacy D, pharmacy E,
size, packaging units, the lowest price, the highest pharmacies G, pharmacies H, pharmacy I, shop. K
average price, median price, mode of entry for and L, a drug store prescription drugs from 54
drug storage. The cost of drugs has also been sent items to 105 items, representing a 41.63 to 60.39
to the pharmacy participants. To use as a reference percent of the total number of drugs from the
price for the cost of the drug. The second source is pharmacy each. The value of the drugs between
the research, collect items to sell all medicines. 9989 to 66,762 baht, representing a percentage of
The confirmation data for drugs is a form of 37.07 to 58.16 percent of its medicines from
electronic files from major wholesalers in pharmacies, each of the circle of pharmacy at the
Songkhla. Be summarized and calculated out in most can be bought at the cost of drugs is high.
the unit price as well as the cost of pharmacy. than the median with one store's pharmacy F,
which has a number of drug 12 list accounted for
Table 3 shows the results of comparing 40 percent of the amount of drugs from
the cost of prescription medications each pharmacies F, worth buying 15,193 baht
participant with a median cost of medications from representing 51.93 percent of its medicines for all.
the pharmacy all participants. The group found from pharmacies F
that the drug, when compared to the cost of a drug
is less than, equal to or greater than the median.
By considering the group as a whole. From the list
of the most common drugs. Each benchmark that
is the one drug that most can be bought at the cost

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Table 3 compares the cost of prescription drugs, participants with a median cost of medications. (From the pharmacy all participants).
Compare Pharmacy
Acquisition cost vs Median drug cost store A store B store C store D store E store F store G store H store I store J store K Store L
Acquisition cost Drug item 77 131 58 30 25 10 26 18 35 126 12 17
< percent 30.68 42.12 29.44 23.26 24.27 33.33 23.00 11.69 23.03 38.65 12.00 11.81
Median drug cost Worth bying 31225 107665 55285 24262 6932 10935 4754 3062 9409 129548 2533 2870
percent 31.35 41.44 30.69 21.50 22.92 30.18 21.65 9.82 26.12 51.22 11.23 6.47
Mean -18.03 -17.11 -25.69 -20.87 -20.51 -7.64 -16.44 -24.34 -20.52 -19.22 -18.09 -16.20
Std.Dev. 22.46 20.94 23.78 19.66 20.01 10.45 14.76 16.1 20.49 25.42 17.48 17.46
Acquisition cost Drug item 105 106 82 69 58 8 54 93 87 120 60 73
= percent 41.83 34.09 41.63 53.49 56.31 26.67 47.79 60.39 57.23 36.81 60.00 50.69
Median drug cost Worth bying 38949 85527 66762 57097 15924 10105 9989 18134 17467 70007 11302 21365
percent 39.11 32.92 37.07 50.60 52.66 27.89 45.48 58.16 48.49 27.68 50.10 48.13
Mean 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Std.Dev. 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Acquisition cost Drug item 69 74 57 30 20 12 33 43 30 80 28 54
> percent 27.49 23.79 28.93 23.25 19.42 40.00 29.21 27.92 19.74 24.54 28.00 37.50
Median drug cost Worth bying 29422 66618 58070 31490 7385 15193 7220 9986 9146 53386 8722 20151
percent 29.54 25.64 32.24 27.90 24.42 41.93 32.87 32.02 25.39 21.11 38.67 45.40
Mean 14.08 17.30 18.50 15.16 11.77 37.36 10.81 16.68 12.67 18.51 14.70 16.12
Std.Dev. 18.41 18.29 22.49 17.80 12.85 25.62 16.00 21.95 15.13 20.65 20.29 20.89

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Table 4 shows the results of the hours. Month This is the kind of 51 drugs
comparison, the median cost of medications. By accounted for 48.57 percent of the total amount of
the nature of the drug. Found that most drug stores drug administered according to the current period
in the downtown area with the purchase of inventory. The drugs are worth 346,830 baht or
medicines in the median cost of a prescription 56.89 percent of the value of all the medicines,
drug the suburban network. This is the kind of 38 pharmaceutical inventory turnover period.
drugs accounted for 36.19 percent of the total Table 5 shows the results of the
amount of the drug, according to its location. The comparative cost drugs from wholesalers with a
drugs are worth 222,755 baht or 36.54 percent of median cost of medications. Segmentation can find
the value of all the medicines, according to its a wholesaler on the benchmark cost of drugs is
location. Segmentation by type of ownership. less than, equal to or greater than the median. By
Found that most pharmacy owners, a pharmacist considering the group as a whole. From the list of
with the purchase of medicines in the median cost the most common drugs. Each benchmark is that
of a drug is a drug that is not owned by a one group. Most wholesalers sell drugs at prices
pharmacist. This is the kind of 38 drugs accounted lower than the cost of drugs, the median cost of a
for 38.38 percent of the total number of drug- drug is the fourth company The amount of the
based ownership group. The drugs are worth drug from 11 to 80 or from 36.70 to 45.83 percent
155,232 baht or 25.46 percent of the value of all of the total number of drugs from wholesalers
the medicines group ownership. It was found that each. With a turnover of between 2,183 to 51,582
most drug stores that opened more than two years baht, from 38.69 to 48.95 percent of the total
of buying drugs on the median cost of medications turnover of each of the wholesaler. The second
under the drug store opened less than two years. group is a wholesaler that most pharmacies in the
This is 40 kinds of medicines accounted for 36.36 cost of drugs is the median cost of medications is
percent of the total number of drugs by the time one namely Wang Pharmacy Pharmaceuticals
operations. The drugs are worth 165,239 baht or Optical Co. Ltd., which has a number of drugs 647
27.11 percent of the value of all the medicines, or ideas. 52.99 percent of the total number of
duration of operation. per day This is the kind of drugs from pharmaceutical companies, Wang
42 drugs accounted for 39.25 percent of the total pharmaceuticals Optical limited with turnover of
number of drug groups during opening hours. The 225,010 baht or 47.76 percent of the total turnover
drugs are worth 264,413 baht or 43.37 percent of of the Palace Pharmacy Pharmaceuticals Optical
total drug spending by all groups during opening limited.

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Table 4 compares the median cost of medications. By the nature of the drug.

General characteristics Compare the median cost of medications. Differences median cost of medications.
of pharmacy Drug item percent Worth Buying percent Mean Std.Dev
Loacation downtown < district 37 35.24 219893 36.07 -19.61 25.35
downtown = district 38 36.19 222755 36.54 0.00 0.00
downtown > district 30 28.57 166965 27.39 18.84 20.63
Ownership Pharmacist < Not pharmacist 31 31.31 178744 29.32 -15.19 24.02
Pharmacist = Not pharmacist 38 38.38 155232 25.46 0.00 0.00
Pharmacist > Not pharmacist 30 30.30 275637 45.22 18.76 16.80
During the operations Established more than 2 years < Less than or equal to 2 years. 40 36.36 165239 27.11 -15.50 17.18
Established more than 2 years = Less than or equal to 2 years. 36 32.73 171724 28.17 0.00 0.00
Established more than 2 years > Less than or equal to 2 years. 34 30.91 272650 44.73 10.74 14.04
Opening hours more than 4 hours a day. < less than 4 hours a day 42 39.25 264413 43.37 -22.90 21.85
more than 4 hours a day. = less than 4 hours a day 37 34.58 123585 20.27 0.00 0.00
more than 4 hours a day. > less than 4 hours a day 28 26.17 221615 36.35 14.94 22.27
Rotation period About 2 months < About 1 month 51 48.57 346830 56.89 -20.28 21.81
Of inventory About 2 months = About 1 month 23 21.91 69526 11.40 0.00 0.00
About 2 months > About 1 month 31 29.52 193257 31.70 22.15 23.79

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Table 5 compares the acquisition cost from wholesalers with a median cost of medications. (From the pharmacy all participants).
Compare Wholesalers
Acquisition cost vs Median drug cost Pharmahof Co., Ltd. Wang Co., Ltd. Krobkruaya Drugcenter Soonya
Acquisition cost Drug item 76 227 80 11 22
< percent 45.78 18.59 36.70 45.83 39.29
Median drug cost Worth bying 51582 79404 21106 2183 11519
percent 38.69 16.85 39.44 48.95 47.02
Mean -11.13 -20.48 -7.28 -16.2 -11.71
Std.Dev. 17.72 21.66 14.63 15.15 17.91
Acquisition cost Drug item 47 647 72 5 20
= percent 28.31 52.99 33.03 20.83 35.71
Median drug cost Worth bying 41770 225010 15342 555 7506
percent 31.33 47.76 28.67 12.44 30.64
Mean 0.00 0.00 0.00 0.00 0.00
Std.Dev. 0.00 0.00 0.00 0.00 0.00
Acquisition cost Drug item 43 347 66 8 14
> percent 25.90 28.42 30.28 33.33 25.00
Median drug cost Worth bying 39975 166696 17068 1722 5472
percent 29.98 35.38 31.89 38.61 22.34
Mean 24.07 15.37 17.28 9.97 16.05
Std.Dev. 19.75 19.58 22.95 14.02 18.27

JOURNAL OF PHARMACY RESEARCH 7 (2013) 429 453


Table 6 shows a comparison of the effects
of the drug on the number of participants, the Table 7 shows the results of comparing
median price. The group found that the drug, when the cost of pharmaceutical drug research
compared to the amount of the purchase is less participants with a median sales price of medicine.
than, equal to or greater than the purchase of a The group found that the drug, when compared to
median. By considering the group as a whole. the cost of a drug is less than, equal to or greater
From the list of the most common drugs. Each than the median. By considering the group as a
benchmark is that one group. Most of the drug can whole. From the list of the most common drugs.
be bought for less than the median. The number of Each benchmark is that one group. Pharmacy
buy less of the median with one shop is pharmacy where most drugs in the cost of drugs under the
K, which has a number of drugs seven items median price for the drug has nine stores is drug
representing 58.33 percent of the total list of all A, drug B, drug C, Pharmacy D, pharmacy E,
medications from the pharmacy K, worth buying pharmacies F. , pharmacy, G, J, drug stores and
967 baht cent. 38.16 percent of the value of buying pharmacies I have a number of drugs from 91 to
drugs from pharmacies K of the second group. 147 items, representing a 37.74 to 49.49 percent of
Most of the drug can be bought for less than the the total number of drugs from the pharmacy each.
median. The total purchase amount of the median The value of the drugs between 6472 to 114,242
has five stores is drug A, drug stores G, baht, or equivalent to 33.41 percent from 47.79
pharmacies H, pharmacy I and drug stores L which percent of its medicines from drug stores each.
has a number of drugs, from 8 to 37, representing The second group Pharmacy, mainly to buy drugs
a percentage of 44.44. 56.25 of the total number of at cost price of drugs as the median price
individual pharmacies. The number of purchases pharmacy has three outlets are pharmacies H, drug
over the amount of the median are six things the stores K and drug stores L which has a number of
drug B, drug C, Pharmacy D, pharmacy E, drugs from 43 to 68 entries representing. from
pharmacies F and drug stores J, which has a 42.96 to 46.58 percent of the total number of drugs
number of drugs, from 8 to 75 or. since 40 to 80 from the pharmacy each. The value of the drugs
percent of the total amount of each drug. The between 8842 to 16,964 baht, equivalent to 39.91
value of the drugs between 3437 to 110,202 baht, percent from 44.41 percent of its medicines from
or equivalent to 49.59 percent from 94.94 percent drug stores each
of its medicines from drug stores each.

JOURNAL OF PHARMACY RESEARCH 7 (2013) 429 453


Table 6 compares the number of pharmacies participants. The acquisition cost under the median cost of medications.
compares the number of purchase Pharmacy
Acquisition cost less than the median cost of medications. store A store B store C store D store E store F store G store H store I store J store K Store L
number of purchase Drug item 17 10 6 3 7 0 10 5 8 15 7 5
< percent 22.08 7.63 10.34 10.00 28.00 0.00 38.46 27.78 22.86 12.00 58.33 31.25
number of the median. Worth bying 5930 4759 2324 1115 1284 0 1337 1131 1498 4049 967 886
percent 18.99 4.42 4.20 4.60 18.53 0.00 28.12 36.92 15.92 3.13 38.16 30.86
Mean -20.38 -18.71 -13.21 -9.98 -19.61 0.00 -18.28 -17.79 -22.35 -7.38 -11.89 -18.00
Std.Dev. 18.94 19.47 9.15 5.66 15.90 0.00 16.55 16.83 17.14 7.38 9.07 10.20
number of purchase Drug item 37 46 12 6 8 2 14 8 17 47 1 9
= percent 48.05 35.11 20.69 20.00 32.00 20.00 53.85 44.44 48.57 37.60 8.33 56.25
number of the median. Worth bying 11198 26380 10199 4059 2210 603 3109 929 2702 15298 359 1625
percent 35.86 24.50 18.45 16.73 31.89 5.51 65.40 30.33 28.72 11.81 14.17 56.60
Mean -13.15 -11.50 -20.27 -33.58 -13.27 -21.16 -16.37 -22.72 -17.99 -12.66 -7.14 -18.06
Std.Dev. 17.90 16.65 18.70 24.49 15.64 0.48 14.53 13.71 18.80 16.79 0.00 22.17
number of purchase Drug item 23 75 40 21 10 8 2 5 10 63 4 2
> percent 29.87 57.25 68.97 70.00 40.00 80.00 7.69 27.78 28.57 50.40 33.33 12.50
number of the median. Worth bying 14098 76526 42763 19088 3437 10332 308 1003 5209 110202 1208 360
percent 45.15 71.08 77.35 78.67 49.59 94.49 6.48 32.75 55.36 85.07 47.67 12.54
Mean -14.83 -17.06 -24.28 -20.60 -26.11 -9.01 -7.74 -33.47 -23.60 -21.77 -31.66 -8.52
Std.Dev. 16.84 17.77 21.30 19.20 21.50 11.38 7.50 18.06 21.97 20.09 24.10 11.52

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Table 7 compares the drug acquisition cost with a median bids price of medication. (From wholesalers)
Compare drug acquisition cost Pharmacy
with a median bids price store A store B store C store D store E store F store G store H store I store J store K Store L
Acquisition cost Drug item 91 139 71 47 41 12 40 43 58 147 30 35
< percent 40.27 49.29 40.34 38.84 43.62 42.86 37.74 29.45 41.73 49.49 30.61 25.93
Median bids price Worth bying 35960 114242 56881 36289 10676 11311 6472 8315 13668 99505 5656 7287
percent 40.10 47.79 34.42 33.45 38.60 37.30 33.41 28.19 41.17 44.89 25.53 17.83
Mean -15.00 -14.77 -19.42 -16.57 -14.78 -6.49 -12.60 -12.38 -18.00 -15.46 -15.72 -13.31
Std.Dev. 17.99 15.53 18.54 17.36 18.57 8.28 15.70 15.56 18.82 17.78 19.49 15.86
Acquisition cost Drug item 78 76 66 43 34 6 39 68 51 86 43 58
= percent 34.51 26.95 37.50 35.54 36.17 21.43 36.79 46.58 36.69 28.96 43.88 42.96
Median bids price Worth bying 28039 56912 57326 42184 8684 3818 7222 13096 10973 49563 8842 16964
percent 31.27 23.81 34.69 38.89 31.39 12.59 37.28 44.41 33.05 22.36 39.91 41.50
Mean 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Std.Dev. 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Acquisition cost Drug item 57 67 39 31 19 10 27 35 30 64 25 42
> percent 25.22 23.76 22.16 25.62 20.21 35.71 25.47 23.97 21.58 21.55 25.51 31.11
Median bids price Worth bying 25672 67877 51047 29999 8301 15197 5676 8081 8559 72606 7658 16625
percent 28.63 28.40 30.89 27.66 30.01 50.11 29.30 27.40 25.78 32.75 34.56 40.67
Mean 20.63 19.25 19.50 25.51 26.52 27.11 31.03 24.59 23.47 19.69 20.29 28.83
Std.Dev. 19.01 18.71 17.84 19.41 21.71 17.16 21.81 17.76 19.45 20.34 18.35 20.18

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Table 8 compares the acquisition of participant with a median bids price of medication from wholesalers. (With the same trade name).
Compare drug acquisition cost (trade name) Pharmacy
with a median bids price store A store B store C store D store E store F store G store H store I store J store K Store L
Acquisition cost Drug item 93 130 59 36 39 17 44 35 54 129 35 39
< percent 44.93 58.30 40.97 31.31 41.05 85.00 41.90 24.82 40.30 70.49 37.23 28.47
Median bids price Worth bying 46528 104190 49270 30863 10927 21954 8817 6677 15216 89644 7561 9875
percent 55.60 56.49 37.63 30.18 39.79 79.96 43.35 23.57 47.30 73.19 34.38 22.97
Mean -8.07 -7.18 -9.22 -6.58 -9.58 -7.26 -6.06 -8.72 -6.43 -5.75 -7.78 -7.48
Std.Dev. 14.61 7.55 16.77 5.95 14.87 8.32 6.57 15.21 6.26 8.66 14.86 14.84
Acquisition cost Drug item 107 80 81 77 53 1 55 103 74 35 57 92
< percent 51.69 35.87 56.25 66.95 55.79 5.00 52.39 73.05 55.22 19.13 60.64 67.15
Median bids price Worth bying 34499 55058 76410 70031 15446 578 10691 21292 16296 22251 14226 32062
percent 41.22 29.85 58.35 68.49 56.26 2.11 52.57 75.18 50.66 18.17 64.69 74.57
Mean 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Std.Dev. 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Acquisition cost Drug item 7 13 4 2 3 2 6 3 6 19 2 6
< percent 3.38 5.83 2.78 1.74 3.16 10.00 5.71 2.13 4.48 10.38 2.13 4.38
Median bids price Worth bying 2662 25205 5266 1355 1086 4924 829 353 657 10589 204 1057
percent 3.18 13.66 4.02 1.33 3.95 17.93 4.08 1.25 2.04 8.64 0.93 2.46
Mean 14.25 6.35 4.02 6.21 2.75 5.46 4.53 6.50 3.36 5.30 4.17 2.97
Std.Dev. 15.12 5.86 2.99 4.07 0.30 2.38 1.12 1.92 2.91 4.55 1.18 1.94

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Table 8 shows the results of comparing the willing to provide low-cost drugs. This may be due to
cost of prescription drugs at participating pharmacies the pharmacy business is highly competitive. Thus,
research bids from wholesalers. By analyzing the drug the cost of drugs, which is a very important
with the same trade name. The group found that the relationship requires trust and one of the researchers.
drug, when compared to the cost of a drug is less than, To prevent media information about the male
equal to or greater than the offering price of the drug. participants and affect business operations. The drug
By considering the group as a whole. From the list of can not be sent away. There could be many reasons,
the most common drugs. Each benchmark is that one such as the drug is unclear. Store out of business, or
group. Pharmacy, mainly to buy drugs at cost price of other reasons, can not send an invitation to join the
drugs less than your pharmacy has three stores are study.
drug B, drug stores F and drug stores J, which has a The study found that the procurement of
number of drugs from 17 to 130 items, representing pharmaceutical drugs in Songkhla province who
the hundreds. 58.30 to 85.00 percent of the total participated in this research. The most popular
number of drugs from the pharmacy each. The drugs medicines from wholesalers, accounting for 83.83
are worth between 21,954 to 104,190 baht, or a percent of total procurement of medicines from
percentage from 56.49 to 79.96 percent of its pharmacies. The study is based on expected future
medicines from drug stores each. The second group events and are subject to a number of factors such as
Pharmacy, mainly to buy drugs at cost medicines bid location, close to all pharmacy wholesalers. Making it
pharmacies are nine store is drug A, drug C, possible to deliver drugs to the pharmacy quickly.
Pharmacy D, pharmacy E, pharmacies G, pharmacies Maya Unlimited order quantities. Making it possible
H, pharmacy, I. , pharmacy drugstore K and L, which to prescribe requirements that are actually sold. And
has a number of drugs from 53 to 107, or from 51.69 the type of drug and diverse. Do not allow pharmacies
to 67.15 percent of the total number of drugs from the to buy drugs from multiple sources to multiple needs.
pharmacy each. The drugs are worth between 10,691 The purchasing directly from the manufacturer of the
to 76,410 baht, or equivalent to 41.22 percent from drug may be greater in some places. There may be
75.18 percent of its medicines from drug stores each. reasons of demand and type of drugs are different.
Prices are reasonable, and more.
Discussion The cost of medicines in this research from
the price of the purchase of the drug in the time frame
The proportion of participant feedback. studied. Which can be used as reference for the
Found that a small number of pharmacies that are procurement of drugs. So, after collecting and

JOURNAL OF PHARMACY RESEARCH 7 (2013) 429 453


analyzing data and drug costs. The research data medications by various drug stores. Such as the
delivery cost medicines to pharmacies that participate duration of the operations that the pharmacy
in this project, without disclosing the name of the operations for more than two years. With the purchase
drug, according to the data of the main objectives laid of medicines in the median cost of medications under
down. In order to remedy the participant or do not the drug store operations less than two years. This
provide a basis for reference in deciding to buy drugs. may be due to the drug store to open its long duration.
Can negotiate drug prices. Reduce administrative Rather than experience in pharmacy management.
costs, and reasonable pricing. Enabling selective drug Procurement of drugs and
Information from comparative cost of each drug cost management more effective drug stores
dose of the drug with a median cost of prescription recently opened joint venture did not last long. Also
drugs that were actually purchased. Found that most found at drug stores open for more than four hours a
drug stores (9 stores) to buy drugs at a cost equal to day. With the purchase of medicines in The median
the median cost of medications administered. The cost of medications under the drug store opened less
reason may be due to the drug, each of the than or equal to four hours per day. May be due to the
participants, most buying drugs from wholesalers. drug store opened less than four hours per day
Making drug costs in line with the median cost of pharmacists. Will work in the public sector or another
medications. However, there are some medications location, then open pharmacy after work. The drug,
that can be bought in drug costs lower than the which pharmacists work all day without work other
median cost of medications. The drug can be places. The time in the opening over. The list of
purchased for less than the median cost of medications and drugs may have many more items.
medications. Considering the business perspective, it Affect the ability to select drugs. Drug procurement
is a powerful drug to drug administration and a cost more efficient. In addition, pharmacies with
advantage in the race. Compared with other drugs, a medication inventory turnover two months. With the
lot of the pharmacies to buy medicines at prices purchase of medicines in the median price of a lower-
higher than the median cost of prescription drug cost cost drugs pharmacy with medication inventory
may be more advantageous. Compare low cost drugs turnover a month. Which could explain the purchase
To consider to improve and make more effective the of medicines in a long time, more of the drug resulted
next administration. in the type and amount of purchasing drugs
For cost reasons or factors that make it differently. Administration of the drug inventory
different medications. Part be explained by the results turnover period is over. The median cost of
of comparative analysis, the median cost of prescription drugs can be purchased at the store, so it

JOURNAL OF PHARMACY RESEARCH 7 (2013) 429 453


is different. It also found that a different location, such purchased for less than the median cost of
as a drug store, a drug store downtown to suburban medications. The purchase amount is equal to or less
nature and ownership between different owners who than the median cost of medications. Such buyers are
are not pharmacists and pharmacists. Do not have to businesses that are cost-effective. Considering the
buy the median cost of different drugs. This may be pharmacies participating in this research. Where the
because participants pharmacy research facility in participant can buy drugs at prices lower than the cost
Songkhla province, which was not very large. Make a of drugs, the median cost of medications. Find a
difference in the cost of drugs resulting from the pharmacy for about half of all drug stores (6 stores) to
transport segment and do not vary much. buy drugs in amounts less than or equal to the median
This study found that the source of supply or cost of medications. This may be due to its ability to
drug wholesaler, it affects the cost of different drugs. negotiate the purchase of medicines participants each
By wholesalers to pharmacies at a price equal to the are different. As a result, the management of
median cost of a drug company. Wang Pharmacy procurement of medicines each drug does not need to
Pharmaceuticals Optical Co. because pharmacies keep a lot of inventory. It held that the drug was more
participating research mainly buy from wholesalers of effective cost management. However, the limitations
(percentage of 72.46 of buying drugs from of the available data in this study can not determine
wholesalers all) makes the cost of drugs reflected. the cause or factors affecting the bargaining power
most of it is equal to the median cost of medications. now.
The other four wholesalers found that most of the It was found that the pharmacy number nine
drugs sold at prices lower than the median cost of most stores can buy drugs at prices equal to or lower
medications. Maybe the reason is that drug pricing than the cost of drugs, the median price for the drug.
strategies. Pharmacy, they may be trying to buy drugs Show that the offered price of wholesale prices may
from stores other than the major popular buy is not reflect the true cost of drugs. Probably because the
original. This may be considered together with other wholesaler's offering price is the only price that
factors such as payment terms and so on. wholesalers set up to sell drugs. When the drug may
In addition, data from a comparison of the be uncertain in the bargain, trading with each drug. As
number of pharmacies participating in the research. a result, the cost of drugs is different. Although
The amount of purchasing medicines on time, it comparing the cost of prescription drugs at
affects the cost of different drugs. Which is based on participating pharmacies research bids from
the principle that if a retail purchase price of the wholesalers. View a list of drugs that have the same
product will be at a reduced price. So buyers can be trade name. It was discovered that most pharmacy to

JOURNAL OF PHARMACY RESEARCH 7 (2013) 429 453


buy drugs at the offering price of the drug Suggestion
wholesaler's true. I found some drug stores (3 stores),
you can buy less than the offering price of This research has some limitations regarding
pharmaceutical wholesaler in the same trade name. the selection of the sample. This is the only example
One reason is probably due to the cost of each in Songkhla. Future studies should provide more
prescription medicines that are purchased from other comprehensive. Also, in general, the cost medicines
vendors that are not based on a single source will have to be adjusted regularly. To use as a
wholesaler. Drug costs have caused the price reference price for the drug is needed to improve the
difference. Or may be due to the offering price of price at all times. If cooperation from drug stores or
wholesale prices wholesalers are just set up to sell pharmacies, as well as the exchange of information,
drugs. When the drug may be uncertain in the bargain, cost drugs. It is helpful to have the power to bargain
trading with each dose of the drug has resulted in cost with drug procurement and supply management cost
difference. medicines better.
The researchers believe that this study
Result contribute to the administrative costs of medicine and
business relationships of a single dose of offense to
This study also suggests that. A survey cost operate more efficiently. While the drug in Thailand is
medications from pharmaceutical drugs with the changing with the expansion of pharmacy chains
purchase of real references prepared using median is nationwide more. To create a good relationship
the middle value. And the cost of each prescription between the drug alone together would be good for
drug. It is different with the seller to bid clearly. The competition and survival of the business in the future.
cost of drugs has been reported from drug stores to
reflect the cost of the drug entirely. And using a acknowledgment
reference price from the cost of actually purchasing
the drug is extremely useful for assembling the Researchers would like to thank all pharmacy
selected drug. Drug procurement Vendors from operators. Please take the time for cooperation and
various sources affect the efficiency of the drug information documents helpful to the research. To
administration. thank Faculty of Pharmacy University The
scholarships Type thematic fund The research was
done well.

JOURNAL OF PHARMACY RESEARCH 7 (2013) 429 453


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