Coloplast involved in UK reimbursement consultation

Coloplast is to be involved in the consultation procedure regarding Department of Health reimbursement pricing for stoma and incontinence appliances and related services.

The company reports that the deadline for consultation responses is March 2007, with the department proposing a reduction in reimbursement and altered mechanism of payment for services due to begin in June 2007.

According to the consultation document, the benchmark price will be set as that of the lowest priced product in any subcategory in part XI of the drug tariff.

It notes that the Department of Health estimates a financial impact of ?27 million a year to the stoma and incontinence appliances market as a result of the reductions.

Sten Scheibye, president and chief executive officer, said: “Our expectations for 2006/07 are unchanged, as we have not included any potential effects of the consultations. When we receive further substantial information from the British authorities, we will make an announcement.”

He added that the company would take part in the consultation procedure as an individual company and also through the appropriate industry associations.

Earlier this month, Coloplast announced that its financial results were in accordance with its previous recent guidance, with the company generating organic sales growth of eight per cent and an EBIT margin of just over 13 per cent.