The body which represents Irish pharmacies has claimed that profit margins in the sector are falling because of rising costs and the low level of fees paid under the medical card scheme.
The Irish Pharmaceutical Union today published a study of the sector carried out by PricewaterhouseCoopers on its behalf.
It found that the average turnover of pharmacies in 2005 was €1.5m, with an average net profit of €84,000, down from €90,000 in 2004. Prescription medicines accounted for two-thirds of turnover, with more than half of these coming from state schemes such as the medical card.
IPU secretary general Seamus Feely described the level of fees for the medical card scheme as 'ridiculously low' and 'unsustainable'.
The IPU has been involved with a dispute with the Health Service Executive over fees, as the HSE has said it cannot negotiate with the body as it would breach competition law.
He accused the Government of restricting the use of generic substitute medicines by pharmacists, saying this could yield savings for the State and consumers.
The study showed that the average person spent €439 on medicines in 2005.
