Australia's protectionist generic medicines plan flawed, says trade group

Proposals from a handful of generic medicines companies for the Australian Pharmaceutical Benefits Scheme (PBS) to preference generic brands of medicines over others are flawed, says trade group Medicines Australia chief executive Brendan Shaw.

“These proposals argue that substituting originator brands of medicines for generic brands will create savings for the PBS. That proposition is flawed on a number of fronts,” he stated, noting:

First, it is based on the fallacy that generic medicines are cheaper for the government than their branded equivalents. The reality is that the government pays exactly the same price for branded medicines and generic versions. The government will not one cent by protecting one group of manufacturers over another group of manufacturers, he argues.