Plea over money 'wasted' on patented drugs

A new system of reimbursing medical drug costs could save the Government millions of euro a year, it was claimed today.

The Association of Pharmaceutical Manufacturers of Ireland (APMI) said drug reimbursement schemes cost the Government more than €1bn a year and making greater use of generic drugs would cut millions from that figure.

The money saved could be used to pay for more expensive medicines or even provide resources to tackle the A&E crisis, the APMI said.

Currently the Government pays a higher price in reimbursements for a patented drug once its patent has expired (originator product) than they do for identical copies (branded generics) when there is more than once product on the market.

But ahead of the renegotiation of the reimbursement agreement this summer, the association has called for the Government to set a single "reference price" for the amount they reimburse, which falls midway between the different prices of the generic brands.

This would encourage doctors in community schemes, hospitals and health boards to use lower cost medicines where they are available, APMI chairman Rory O’Riordan said.

“We strongly believe it is now time the Government secured better value for off patent medicines in their reimbursement systems.

“At the moment there is little incentive to any of the players involved in the supply of medicines, from the doctor to the pharmacist, to use lower cost medicines when available, thus costing the Government, and us, the taxpayers, millions in extra cost drugs.”

He gave the example of Statin drugs, which are used to treat cholesterol and for which the Government pays a reimbursement fee for ex-patented drug Lipostat that is 20% higher than the price paid for the generic brands.

He calculated €8.3m could be saved each year for this drug alone.

“These savings can make the approval and reimbursement of new and more costly medicines easier to facilitate, as they create some financial headroom for innovative medicines, such as biotech medicines, which are used in the treatment of cancer, renal dialysis and arthritis,” he said.

Mr O’Riordan said he did not think there was a reluctance by doctors to use generic brands, but that GPs became used to using the originals while they were under patent and there was currently no specific prompt to make them change brands.

Branded generics are identical copies of the original drugs, which can be manufactured once the patent has expired on the brand.

They are tested in clinical trials and licensed by the Irish Medicines Board and are typically 25% cheaper for the patient than the original, the APMI said.

They currently command a 7% share of the market, and Mr O’Riordan said he hoped that would rise to 20% if the new scheme is endorsed.

The association, which represents Ireland’s indigenous pharmaceutical industry and whose members are engaged in making branded generics, said it had the manufacturing capability to cope with such a rise.