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Pharmaceutical Industry Issues

Generic Medicines

Generic medicines are in the main copies of pharmaceutical products that are no longer protected by patent. This makes them attractive to the NHS, because they are generally less expensive than branded medicines. Their manufacturers do not incur the significant risks and costs associated with the research and development of innovative medicines.

A generic medicine contains the same active ingredient as a branded medicine that is no longer protected by patent. It is likely to have similar, but not necessarily identical, formulations to the original medicine. However, all generic products have to go through the same stringent and quality requirements demanded of the original product.

High-quality generic medicines from reliable authenticated sources are a valuable component of overall healthcare expenditure, but because they are by definition therapies which are at least 20 years old, they cannot be a substitute for advances in medical science arising from recent research and development by the innovative research-based industry.

A growing trend

The prescribing of generic medicines in Britain is increasing. It is higher than in many other EU countries – more than 66 per cent of all prescriptions are written generically. This compares with 35 per cent only 15 years ago. In some GP surgeries, generic prescribing is more than 90 per cent.

When they make decisions about prescribing, doctors have to consider a wide variety of factors, often unique to the patient, such as their ability or willingness to go along with the course of treatment. If a generic medicine has a different colour or shape, it can cause problems, especially for older patients who have to take a range of medicines. This can be a major source of waste in the NHS if expensive medicines are left unused. In addition, there are potential health hazards if the benefits of the treatment are undermined, as many medicines are only properly effective if they are taken as prescribed.

Value for money

Recent publicity concerning the rise in prices of many generic medicines was the result of many different factors, including the need to introduce Government-approved information through the use of safe individual patient packs, as distinct from the older practice of dispensing from bulk into bottles with only limited information provided to the patient.

The prices of generic medicines offer the NHS good value and the average prices of generic products is appreciably lower in the UK than in France, Germany, Spain and Italy. Appropriate use of generic medicines can help to free up resources for important new advances in medicines.

february 2001

 

 

The pharmaceutical industry is one of Britain’s most important industrial sectors, and is crucial to the health and wealth of the nation. Not only does it create jobs for thousands of people, many of them using the latest technology and carrying out cutting-edge research into the medicines of tomorrow, but also makes significant export earnings. Most importantly, the medicines that it provides to the NHS help millions of patients every day.

In any complex business, there are wider issues which affect the way it is run and how effective it can be. The pharmaceutical industry is no exception. The short papers set out here outline twelve key areas where the industry is trying to foster a better operating environment in the UK, so that patients in Britain and all over the world can benefit from the modern medicines produced by pharmaceutical companies in the UK.

As circumstances change, the papers will be updated and published on the ABPI’s website.

 

 
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