No need for further PBS cuts
February 8, 2012
THE record number of drugs
coming off patents in 2012 and the
launch of their generic equivalents
will drive hundreds of millions of
savings to the Pharmaceutical
Benefits Scheme this year,
eliminating the need for further
PBS cuts, according to the Generics
Medicines Association (GMiA).
“Australian patients and taxpayers
need to make the most of the
unprecedented value of medicines
coming off patent in 2012 – leading
to a windfall of hundreds of
millions of dollars in savings to the
economy,” GMiA said.
Backing these statements, the
Chairman of GMiA, Dr Martin Cross,
said Australia should take its lead
from the US and UK which both
“depend heavily upon the more
cost effective, high quality generic
medicines to create savings to the
patient and drive savings to the
countries’ respective health budgets”.
According to Cross, 78% of all
medicines dispensed in the US are
generic follow-ons, compared to
Australia where only 36% of drugs
dispensed are generic follow-ons.
“Every time a consumer chooses
a follow-on generic medicine, there
are substantial benefits
to national savings,” he said.
“We need to ensure the PBS
remains sustainable and affordable.
“Supporting the uptake of
follow-on generic medicines in
Australia provides a three-way win
for the patient, the taxpayer
and the economy,” he added.
Adding to his argument, Cross
said that when the first follow-on
generic medicine lists on the PBS
there will be an automatic
statutory 16% reduction applied to
both the follow-on generic
medicine and the initial brand.
“This generates an immediate
and significant saving to the PBS
and government,” he said.
This windfall needs to be better
absorbed back into the health
budget, according to Cross, who
added that if the uptake of generic
drugs was boosted, the
Government would not need to cut
into the PBS in order to get the
Budget into surplus.
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