Australian trade groups argue over how increasing generic drug use drives savings

While there is no difference when it comes to safety, efficacy and quality, there is a difference when it comes to price between generic and original brand medicines, according to a new report from Australia’s Generic Medicines Industry Association (GMiA), although this is disputed by the research-based pharma sector.

Increased usage of generic medicines will drive further savings to the government and taxpayers. Government must introduce policy that recognises the different policy objectives delivered by the original brand and the generic medicine to fully leverage savings to Australia’s Pharmaceutical Benefits Scheme (PBS), by providing the physician, pharmacist and patient a reason to choose the generic medicine.

Under the pricing rules of the Pharmaceutical Benefits Scheme (PBS), specifically expanded and accelerated price disclosure (EAPD), each time a generic medicine is dispensed instead of the original brand of the medicine, the government and taxpayers' bank savings.