Increased use of generic drugs in South Africa could save health sector 400 million rand

In South Africa, a switch of 5% of the volume of branded medicines to a generic equivalent could save the health care industry and patients in excess of 400 million rand ($39.7 million) per year, says South Africa’s National Association of Pharmaceutical Manufacturing (NAPM).

While pharma market research firm IMS calculates the private pharmaceutical market in South Africa to be about 20 billion rand a year, there is scope for vast savings in medicine costs. IMS’ research indicates the average price of branded drugs is 213 rand as opposed to generic medicines at 68 rand. Based on these figures, the substitution of a generic medicine for a branded product would lead to a saving of up to 145 rand per item.

SA medicines spending grew 7.8% to 1.1 billion rand in 2012