More generic competition
February 23, 2012
THE Generic Medicines Industry
Association is urging pharmacists
not to make bulk purchases of new
generic medicines now, because
this locks in the price and means
pharmacies won’t benefit from
“expected significant price
competition throughout 2012” as
new suppliers enter the market.
GMiA, which includes Apotex,
Ascent, Alphapharm, Aspen and
Hospira, says its members will this
year drive hundreds of millions of
dollars in savings to the PBS due to
the introduction of new generics,
but says the looming price cuts
“will have a detrimental impact on
pharmacy profitability this year”.
On 01 Apr 75 medicines on the F2
formulary will undergo the single
largest price cut in PBS history.
GMiA says that in order to deal
with the massive changes
pharmacists need to increase
substitution now, especially to
avoid “significant unnecessary loss
overnight on 01 April in the value
of inventory”.
The association also says
pharmacists should “guard against
any extension to direct distribution
of pharmaceuticals,” with Pfizer
Direct hitting wholesaler margins
and this in turn flowed onto rebates
traditionally provided to pharmacy.
“Supporting direct distribution
models and making them
successful will encourage others to
adopt the direct distribution model
and could further diminish rebates
to pharmacy,” said GMiA CEO Kate
Lynch in a statement overnight.
“This is a seminal year and
pharmacists really do have the
future of pharmacy in their hands
depending on who they support
during these major generic product
launches,” Lynch said.
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