Generics: a game changer?
June 21, 2012
THE Federal Government’s
current Pharmaceutical Benefits
Scheme reform is a game changer
for pharmaceutical players in the
Australian market, with the rapid
shift towards generic medicines
driving a transfer of power in the
pharmaceuticals industry,
according to the inaugural GenRem
Report 2012, compiled by Sinapse.
These reforms, according to the
report are also creating major
uncertainty for pharmaceutical
companies’ medium-to-long term
revenue projections.
“The large number of key
medicines coming off patent over
the next three years is putting the
focus on generic-branded
products and increasing the
pressure on pharmaceutical
companies to recruit and develop
specialist sales teams,” a statement
from Sinapse said.
The report also found that
increasing consumer demand for
generics, coupled with a rise in
industry participants and the PBS
reforms are pushing the salaries for
specialist pharmacy sector sales
people to “unprecedented levels”.
“The large number of key
medicines coming off patent over
the next three years is putting the
focus on generic-branded
products and increasing the
pressure on pharmaceutical
companies to recruit and develop
specialist sales teams,” Sinapse said.
As such the report found that
Queensland currently tops the pay
rates for senior sales managers in
the generics sector with packages
climbing to up to $150,000 a year,
while remuneration packages for
senior executives are now
exceeding $300,000 annually.
Interestingly the report also
found that incentive payments are
also making up a higher proportion
of overall remuneration packages
for generics sales teams; whilst
there is a direct link between
medicines coming off patent and the
composition of incentive packages
for generics sector sales teams.
“The industry is experiencing a
clear transfer of power from
prescriber to dispenser which is
making the challenge of engaging
Australia’s 5,000 strong network of
community pharmacies more
important than ever”, said Sinapse
Managing Partner, Con Tangalakis.
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