Government drops generic substitution plans
pharmafile | October 15, 2010 | News story | Sales and Marketing | NHS, generics, government
The coalition government has dropped plans to implement generic substitution in England.
The Pharmaceutical Price Regulation Scheme (PPRS), a scheme agreed by the DH and UK industry body ABPI, could have allowed pharmacists to swap a doctor-prescribed branded medicine with a generic substitute in an effort of cost-effectiveness.
In a ministerial letter, the health minister Simon Burns said that after a three-month consultation period on the new PPRS scheme “the Coalition Government intends to stand by the 2009 PPRS agreement, which expires at the end of 2013”.
He added: “The Department will be looking at further ways to support the use of generic medicines in a way that is acceptable to patients, recognising that there are still some savings that can potentially be delivered in this area.”
Health Minister Lord Howe said that patients should be “reassured” that the coalition government will look at more “appropriate ways of supporting the use of generic medicines” and will incorporate value-based pricing that “will help to ensure we pay a price for drugs which better reflects their value”.
ABPI: ‘Focus on patients not short term financial targets’
The issue has caused much debate within the industry but the ABPI last year gave provisional backing to automatic substitution where it could be shown to be cost-effective.
Responding to the announcement, Dr Richard Barker, director-general of the ABPI said: “Generic medicines play a vital role in the NHS armoury. Most prescriptions in the UK are filled with off-patent medicines, but many patients need modern branded medicines to be adequately treated.
“However, we see parts of the NHS inappropriately switching such patients to low-cost generics and so putting their welfare at risk. It’s vital that patients, not short-term financial targets, come first in the choice of prescription medicines.
Barker concluded: “This is the right solution for patients, the NHS and for Britain’s world-leading life sciences sector.”
Relief for small to medium-sized pharma
The Ethical Medicines Industry Group (EMIG) said it was “delighted” by the DH’s decision not to pursue proposals to introduce automatic generic substitution in primary care.
The Group, which 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.
Leslie Galloway, chairman of EMIG, said: “The introduction of generic substitution has faced opposition from patients, professionals and industry. We are delighted the Department has listened to our concerns and abandoned its proposals to implement this costly and unwanted system. EMIG members opposed the introduction of generic substitution as they believed it could have hindered patient safety.
“Moreover, EMIG believed that generic substitution would not result in significant savings to the NHS as approximately 83% of drugs are already written generically.
“Indeed, it may actually have increased 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 to the NHS.”
Ben Adams
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