The Grattan Institute has revealed that the Pharmacy Guild of Australia has written to its supporters with “false and misleading claims” suggesting that they pull their support from the institute.

It follows the publication of the institute’s recent report — called Future Pharmacy: A Better Deal for Patients and Taxpayers — which said the guild had too much control over pharmacy at the expense of both patients and taxpayers.

It called for the Federal Government to stop negotiating the $26 billion Community Pharmacy Agreements with the guild and instead establish an independent authority to set dispensing fees based on pharmacy costs.

It also repeated calls for the end of the location and ownership rules, which have historically protected pharmacy owners from competition from the likes of Woolworths.