GMiA issues policy plea
February 18, 2014
The Generic Medicines Industry
Association has warned that the
current government policy of
accelerated price disclosure will
result in “numerous unplanned
consequences” which will “further
burden Australian taxpayers in their
support of the PBS into the future”.
In an open letter to pharmacists
across Australia issued yesterday
afternoon (PD breaking news)
the GMiA board stresses that
the organisation isn’t seeking a
government handout, but rather
“health policy that supports a
stable, viable generic medicines
industry because this is in
Australia’s paramount interest”.
The letter, headed “The Generic
Medicines Industry in Australia
Needs You to be Our Advocates”,
warns that budgetary pressures,
misinformed public debate and
media commentary regarding
generic medicines could lead
to Federal politicians being
pressured into policies that could
permanently damage the Australian
pharmaceutical industry.
“We ask for your support to
ensure the truth about our industry
is heard,” the letter states.
Key issues canvassed include
the higher savings than budgeted
from existing policies, which have
realised $4 billion since 2010 -
twice the original forecasts.
GMiA says it’s critical to support
a viable generic medicines industry
because PBS medicine prices fall
when generics enter the market.
However “the presence of
potentially invalid patents are
damaging our PBS,” with the
successful challenge to the patent
of rosuvastatin set to save the govt
hundreds of millions of dollars.
The GMiA warns that accelerated
price disclosure is impacting
the investment environment in
Australia, which in turn makes
patent challenges more difficult.
“While a weakened generics
sector would be welcomed by
pharmaceutical companies with
patented medicines, this is not in
Australia’s national interest.
“We support an adequate return
for innovation...we don’t support
rewarding potentially invalid
patents,” the letter states.
The issue of biologicals was also
raised, which in the future will
further dominate the PBS.
“As pharmacists you are aware
of the impact of evergreening...
our politicians should be focused
on establishing health policy
that addresses these issues and
significant savings to the PBS will
indeed follow,” the letter warns.
The GMiA letter is signed
by Kate Lynch; Apotex md
Roger Millichamp; Hospira vice
president Mark Crotty; Wayne
Marinoff, Aspen head of generics;
Alphapharm md Stephen Fraser;
and Ronald van der Pluijm, Actavis
Australia/NZ vice president.
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