EGA Press Release

Thursday, 25 March 2010

EU MUST BACK GENERIC MEDICINES TO SAFEGUARD THE FUTURE OF HEALTHCARE

“It is time for European policy makers to take actions to ensure a long term healthy generic business in Europe.” This call was issued in the opening statement of Greg Perry, EGA director general, at the 2nd Sustainability Conference organised by the EGA in Brussels today. Mr Perry declared that sustainability of the European generic medicines industry was under significant pressure, thereby placing both the long-term provision of healthcare for Europe’s citizens and the European industrial competitiveness at serious risk.

Whilst the major benefits of generic medicines competition are widely recognised by European authorities and stakeholders, some Member States do not optimise the use of generic medicines. This clear message was conveyed to conference delegates, including representatives from the European Commission, EU Member State pricing and reimbursement agencies, health insurers, patient and consumer groups, doctors’ and pharmacists’ associations and generic medicines companies.

In his opening speech, EGA President Didier Barret emphasised the critical role of generic medicines in ensuring access to medicines for patients and for the long-term sustainability of EU healthcare. He stressed that generic medicines account for nearly 50% of medicines dispensed in Europe, but less than 18% of pharmaceutical costs. “The generic medicines industry is already a cornerstone of healthcare systems in Europe. This is a responsibility that the European generics industry is prepared to take but that authorities also need to sustain” Mr Barret stated.

Presenting the findings of the recent IMS report on generic medicines¹, Alan Sheppard, Global Head Generics IMS, stressed that unprecedented savings potential had been and could still be made through the use of generics. However, he warned that, despite many products set to come off patent in the next decade, post 2013, generic medicines alone would no longer be able to compensate for escalating medicine costs. “It is therefore essential that generic medicines are available immediately on patent expiry and that benefits accrue into the future,” Mr Sheppard concluded.

“The EGA has constantly highlighted the importance of incentivising pharmacists, physicians and patients, with a view to increasing patient uptake of generic medicines. The use of these affordable products would create headroom for competition in the medicines’ sector by freeing up pharmaceutical budgets to invest in long-term healthcare” Mr Barret notes.

The EU sector inquiry report, launched in July 2009, identified unjustifiable anti-competitive factors operating against generic medicines. Dramatic government-forced price reductions, restrictive tendering systems, increasing regulatory costs, and the lack of EU national government measures to stimulate greater patient access and use of generic medicines, are also squeezing the sector. The onus is now on policymakers both at EU and national level to recognise the contribution of the generic medicines industry, support it and safeguard the future of sustainable healthcare in Europe, the EGA says.

¹ Generic Medicines: essential contributors to the long-term health of society – sector sustainability challenges in Europe

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