John Deasy (Waterford, Fine Gael)
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Question 44: To ask the Minister for Health and Children her plans to reduce the State drugs bill through the use of generic medicines; and if she will make a statement on the matter. [13132/09]

Jim O'Keeffe (Cork South West, Fine Gael)
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Question 51: To ask the Minister for Health and Children her views on whether there are potential savings of up to €350 million a year through the use of branded generic drugs throughout the health service; if so, the way these savings might best be achieved; and the obstacles that are in place, whether legislative or otherwise, in this regard. [13023/09]

Jim O'Keeffe (Cork South West, Fine Gael)
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Question 70: To ask the Minister for Health and Children if it is her policy to encourage the use of generic drugs; the action that is being taken to implement this policy; and if she has further proposals in this regard. [13022/09]

Mary Harney (Dublin Mid West, Progressive Democrats)
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I propose to take Questions Nos. 44, 51 and 70 together.

The use of a proprietary drug or a generic equivalent is a matter for the prescriber, in consultation with the patient. Both my Department and the HSE support the increased use of generics where this is appropriate. Prescription drugs can be classified into four groups: proprietary drugs which have a generic equivalent, proprietary drugs which do not have a generic equivalent, branded generics and unbranded generics. In 2007 about a quarter of all drugs dispensed to medical card holders were proprietary drugs with generic equivalents, at a total cost of approximately €150 million.

Since the introduction of revised agreements in 2006 with IPHA, the pharmaceutical manufacturers, the price of every proprietary drug with a generic equivalent on the Irish market was reduced by 35% (20% from 1st March 2007 and 18% from 1st January 2009). Price reductions have been applied to approximately 600 products to date. These reductions have eroded the difference in price between proprietary and generic products in Ireland. Analysis by the National Centre for Pharmacoeconomics, based on the volume and cost of drugs dispensed in 2003, estimated potential savings from generic substitution in the range of €15 million to €21 million. This was based on an average price differential between proprietary drugs and the lowest cost generic equivalents of 21.6%.

The HSE currently estimates that, following the 35% reduction in the price of patent-expired brand leaders, there is now a differential of approximately 10% between off-patent proprietary and generic products. Based on a total cost of €150 million for proprietary items on the GMS that have generic equivalents, this suggests that approximately €15 million in savings could be made if there were to be full substitution. Greater savings would, of course, arise if the price of generic products were to be reduced. The NCPE will carry out a detailed analysis of the current position as soon as the data for January of this year, the first month for which the second part of the IPHA price reduction came into effect, becomes available.

The report submitted to me in December 2008 by the group chaired by Dr Michael Barry recommended, amongst other things, that GPs should be encouraged and facilitated to prescribe generic products. An implementation group has since been established to identify and oversee the introduction of specific measures that will deliver more cost effective prescribing by GPs.