Generics could save millions
February 21, 2012
AUSTRALIA pays significantly
more for generics and prescribes
proportionally less of them than
other countries, according to a
recent article published in the
Medical Journal of Australia.
Written by Professor Philip Clarke
of the Centre for Health Policy,
Programs and Economics at the
University of Melbourne, the article
argued that Australia could save
hundreds of millions of dollars in
PBS subsidies if generic drugs were
prescribed more often and the
system of their pricing was improved.
Speaking in the wake of the
article, Kate Lynch, CEO of the
Generic Medicines Industry
Association (GMiA), said “every
time a consumer chooses a
follow-on generic medicine, there
are substantial benefits to national
savings”.
“Across the pharmacy counter,
follow-on generics cost the same as
the original branded medicine.
“Therefore, the patient is not
being incentivised to opt for the
generic follow-on.
Lynch quantified her statements
by saying that “this not up to
individual community pharmacists
but related to the absence of a
Government price signal to
patients”.
“We believe patients should be
financially rewarded for opting for a
generic medicine which is
exactly the same in quality as a
branded version yet a much better
bet for the economy,” she said.
According to GMiA, only 36% of
all prescriptions in Australia are for
follow on generic medicines,
compared to 78% in the US.
“This is because in the U.S.,
patients are far more
sensitive to the price of medicines,”
GMiA said.
MEANWHILE, GMiA also said that
if the government does not act
soon to sure up the sustainability of
the generic medicines sector, that
Australians could in the future, be
facing similar drug shortages that
are currently hitting American
cancer patients.
“We need to ensure further cuts
to the PBS are avoided,” said Lynch.
“Pharmaceuticals are
Australia’s leading export of
elaborately transformed goods.
“Yet our role in returning
hundreds of millions of dollars to
the economy is barely recognised,”
she added.
Lynch also argued that Australian
policy makers need to ensure
patients have greater access to high
quality, affordable follow-on
generic medicines.
“If these policy levers were put in
place in this year’s Budget, we
know it will be a three way-win for
the patient, the taxpayer and the
economy,” she added.
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