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News Release
8th February 2012
The generic medicines sector will drive hundreds of millions of savings to the PBS in 2012 – eliminating the need for further PBS cuts
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, according to the peak generic medicines body.
Chairman of the Generic Medicines Industry Association (GMiA), Dr Martin Cross, says Australia should look to developed countries such as the United States and the United Kingdom, as 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.
In the United States, 78% of all medicines dispensed are generic follow-on medicines. This is mainly due to patients being highly sensitive to the cost of medicines. By comparison, in Australia patients accessed follow-on generic medicines only 36% of the time.
“Every time a consumer chooses a follow-on generic medicine, there are substantial benefits to national savings,” says Dr Cross.
“In Australia, the presence of generic medicines will effectively pour hundreds of million back into the 2012-13 Federal Budget.”
Generic medicines are accepted as delivering the same health benefit to all Australians as their branded equivalents and they must meet the same strict Australian standards as the original brand.
“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,” Dr Cross says.
This year a record value of medicines are coming off patent in Australia. When the first follow-on generic medicine lists on the PBS, there is an automatic statutory 16 per cent price 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.
Dr Cross says this windfall needs to be better absorbed back into the health budget. He stressed that if the uptake of follow-on generic medicines were boosted, the Government would not need to cut into the PBS in order to get the Budget into surplus.
GMiA will highlight the savings created by the presence of a generic medicines sector when it co-hosts the inauragural event for 2012 of the Parliamentary ‘Friends of Medicine’ - a bi-partisan morning tea on Wednesday 8 February 2012.
An overwhelming number of MPs, patient and health interest groups will attend this event at Federal Parliament. The focus will be on the future of medicines and the role of the generic medicines industry in ensuring an optimal return to the public purse, while delivering important health outcomes for all patients.
ENDS
For all media enquiries please call Ms Kate Lynch. CEO of GMiA on 0432 500 308.
Media are invited to the morning tea at10am. Private dining room 1. Wednesday 8 February 2012. GMiA is hosting the event with ‘Friends of Medicine’ Chair Mr John Alexander MP and Deputy Chair Mr Shayne Neumann MP. Mr Neumann, on behalf of the Minister for Health, and the Shadow Minister, Mr Peter Dutton MP, will be making a short address at the morning tea. Dr Cross, Chairman of GMiA will also be speaking.
The Generic Medicines Industry Association (GMiA) is the national association representing companies that manufacture, supply and export generic medicines. The generic medicines sector is a high value-add sector delivering significant benefits to the Australian public by way of affordable medicines and high skilled jobs.