State could save €200m each year by switching to generic medicines suppliers say

Medicines for Ireland said an extra 6,000 nurses could be employed from the savings

The increased use of generic medicines has delivered €1.6 billion in savings to the Irish health system since 2013.  Picture: Pexels

The Government could save up to €1bn if the health service switched to generic medicines according to a new report from the Irish pharmaceutical trade association.

Medicines for Ireland (MFI), the supplier of the majority of medicines in Ireland launched ‘Reductions in the Cost of Medicines’ report today which states that €200 million of saving could be made per annum that could be redirected towards additional HSE resources, paying for 6,000 additional nurses or 3,500 extra nursing home beds.

Chair of Medicines for Ireland, David Delaney said: “It is well recognised by the HSE and the Department of Health that the increased use of generic medicines has delivered €1.6 billion in savings to the Irish health system since 2013. These savings have been delivered by the members of MFI who supply the majority of medicines to the HSE and to patients directly."

“Covid-19 has placed added pressure on an already over-stretched health system. The policy proposals set out in this report outline the opportunity for Government to free up significant HSE resources by avoiding an annual spend of hundreds of millions of euro on high cost patented medicines."

Mr Delaney said the average reimbursed price of generic medicines was six times less expensive when compared with non-generic medicines, illustrating the very significant savings that can be availed of at both national and local level. 

“Failure to address the high cost of medicines, with more sustainable generic or biosimilar options, will ensure that funding constraints remain a millstone around the neck of an already overstretched healthcare system," he said.

"The current penetration rate for biosimilars medicine in Ireland is below 50 per cent while the average across other EU countries is in the range of 80 – 90 per cent, demonstrating the immense opportunity for further savings in this area."