Generic drugs key to unlocking savings for Australian economy, says MJA

A report in the latest issue of the Medical Journal of Australia (MJA), has backed the case for the government making substantial budget savings by implementing policies that encourage the uptake of high quality but more affordable generic medicines, says the Australian Generic Medicines Industry Association (GMiA), which itself is arguing the same point (The Pharma Letter February 9).

The findings in yesterday’s MJA report are backed by the peak body for generic medicines. In the article, Philip Clarke of the Centre for Health Policy, Programs and Economics at the University of Melbourne, says hundreds of millions of dollars could be saved if generic medicines were prescribed more often and the system for pricing them was improved.

Prof Clarke says Australia prescribes proportionally far fewer generic medicines than many other countries. GMiA chief executive Kate Lynch agrees, saying: “Every time a consumer chooses a follow-on generic medicine, there are substantial benefits to national savings.”