GMiA backs up its own 1%
October 11, 2010
THE Generics Medicines Industry
Association has provided an
additional data table to back up its
statement that the current level of
non-price benefits as a proportion
of total benefits provided to
pharmacy by its members is less
than 1% (PD Fri).
Having drawn industry heat over
its lack of supporting evidence for
the 1% figure, a table in a GMiA
submission to the ACCC last week
shows that in 2009 its members
Alphapharm, Sigma (generics only),
Apotex, Hospira and Ascent
provided non-price benefits as a
proportion of total benefits to
pharmacy of less than 1%.
However it’s likely that the
controversy will continue, with no
breakdown of the the 1% figures
provided except to say that they are
from “member declarations”.
GMiA said the figures, cited from
the Pharmaceutical Benefits Pricing
Authority’s Annual Report for the
year ended 30 June 2009, prove
unequivocally that “non-price
benefits provided by members of
GMiA are of immaterial financial
value and directed at the
enhancement of pharmacy services
and / or building a business
relationship between the supplier
and the pharmacist.
“As such this is not a major factor
in a pharmacy’s decision to use a
particular brand of product.
“Just as importantly, the relationship
between the supplier and the
pharmacy does not influence or
change the type of generic
medicine dispensed and therefore
there is little or no impact on the
pat¡ent,” the Association added.
Non-price benefits figuring in the
1% calculation, according to
GMiA’s members included stock
replacements for expired items,
QUM programs, access to tools
designed to increase generic
substitution, training and
educational events for pharmacists/
pharmacy assistants, pharmacy
aids e.g. prescription holders and
patient information sheets, cooperative
merchandising, T-shirts,
conference sponsorship, dinner/
lunch/breakfast meetings and small
value items such as coupons,
vouchers and movie tickets.
The Association said the ACCC
has as yet failed to identify any
detriment which would possibly
arise from its membership making
“educational events” available to
pharmacists.
“lt is unacceptable for the ACCC
in exercising its statutory duty under
the TPA, to ignore the valid and
highly relevant arguments which
GMiA have made to the ACCC
about this issue [of public detriment
through the provision of non-price
benefits],” the Association said.
“ln GMiA’s view the ACCC must
specifically and directly address
GMiA’s arguments in relation to the
lack of any public detriment arising
from educational events... rather
than falling back on the t¡red
refrain of “transparency” as the
sole justification for an unnecessary
and onerous condition,” the
Association added.
Medicines Australia has also
made a further submission saying it
remains of the view that reporting
benefits to pharmacists is
appropriate, regardless of the amount.
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