MA generic disadvantage?
July 31, 2012
A TOTAL prohibition on the
provision of brand name reminders
to healthcare professionals including
pharmacists and doctors removes
an important element of competition
in the generic medicines market,
according to the Generic
Medicines Industry Association.
The comments come as part of
GMiA’s submission to the Australian
Competition & Consumer Commission
(ACCC) regarding updates to
Medicines Australia’s Code of
Conduct currently being considered.
Changes to the MA Code
proposed in its 17th edition,
include a total ban on the provision
of brand name reminders to
healthcare professionals.
This ban, according to GMiA
disadvantages the generics medicines
sector because the “expensive
methods” of promotion utilised by
Medicines Australia members are
“often not affordable in respect of
generic medicines as they cannot
be covered within the narrower
cost margins for these medicines”.
“Prescription medicines cannot
be advertised or sold
directly to the public so there is
little ability for a supplier of a
generic medicine to differentiate its
product,” GMiA said.
“The key competitive mechanism
available to a supplier to
differentiate a generic medicine
is to offer discounts to pharmacists.
“Brand name reminders are not
used to induce prescribing, rather,
they are regularly used by GMiA
members to remind a pharmacist
that there are substitutable (and
often lower cost) generic medicines
available,” GMiA added.
Taking this option away, according
to GMiA will reduce competition.
“The choice of which brand of
competing bioequivalent medicines
to dispense has little or no impact
on the health outcome for a
patient and, in fact, a decision to
dispense an alternative cheaper
brand drives savings of hundreds
of millions of dollars for the
government, the Pharmaceutical
Benefits Scheme and the public,”
GMiA said.
“This is in stark contrast to the
focus of MA members; promotional
activities in respect of medicines
where only one brand of the
medicine is available.
“The promotional activities of MA
members are targeted at influencing
the choice of medicine prescribed
by a doctor and this has a direct
impact on the health outcome of
the patient.
“Promotional activity by members
of MA may also have the potential
to result in the over use of
medicines by doctors that can
cause a blow out of PBS costs,”
GMiA added.
The above article was sent to subscribers in Pharmacy Daily's issue from 31 Jul 12To see the full newsletter, see the embedded issue below or CLICK HERE to download Pharmacy Daily from 31 Jul 12
