Generic substitution will not deliver significant NHS savings, says EMIG
pharmafile | March 31, 2010 | News story | Sales and Marketing | EMIG, NHS, generics
The Department of Health’s plans for automatic generic substitution will not result in significant savings for the NHS and should be abandoned.
That’s the message from the Ethical Medicines Industry Group (EMIG), which represents small to medium pharma firms.
It says proposals to allow pharmacists to swap a doctor prescribed branded medicine with a generic substitute could even have the opposite effect of its intended cost-saving aim.
EMIG chairman Leslie Galloway said: “The introduction of generic substitution has faced opposition from patients, professionals and industry. We hope the Department of Health will listen to our concerns and abandon its proposals to implement this costly and unwanted system.”
Galloway continued: “EMIG believes that generic substitution will not result in significant savings to the NHS as approximately 83% of drugs are already written generically. Indeed, it may actually increase the NHS medicines bill by eliminating any incentive for the continued development of medicines that offer greater patient choice as well as value for money for the NHS.”
Last year’s version of the Pharmaceutical Price Regulation Scheme offered three options for generic substitution in England – maintain the status quo, introduce dispensing flexibility but with specific exclusions or introduce dispensing flexibility but limit it to selected commercial products.
The consultation process for the proposals began on 5 January and ended yesterday (30 March).
The issue has caused much debate within the industry but big pharma body the ABPI last year gave provisional backing to automatic substitution where it could be shown to be cost-effective.
In contrast an EMIG survey found 85% of its 26 member companies felt that option one should be the preferred choice.
The Group, that represents 90 small to medium-sized pharma, was not involved in discussions with the government, and has the most to lose from generic substitution given its tighter portfolio, smaller research capabilities and reliance on single blockbusters.
In addition to patient safety concerns, EMIG says the policy will diminish incremental innovation, such as drug delivery and product improvement, as there will be no long-term financial benefit for doing so if drugs can be so readily substituted after they come off patent.
A survey held on the online doctors network Doctors.net.uk for EMIG found that 76% of 765 doctors polled were opposed to generic substitution.
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