Jim O'Keeffe (Cork South West, Fine Gael)
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Question 80: To ask the Minister for Health and Children her views on the potential savings to be achieved from the use of branded generic drugs; the steps being taken to achieve these savings; and if she will make a statement on the matter. [26195/09]

Mary Harney (Dublin Mid West, Progressive Democrats)
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Generic drugs are available in Ireland for many medicines. In 2008, 18% of prescription items under the GMS scheme and 11% of items under the Drugs Payment Scheme and Long Term Illness Scheme were dispensed generically. My Department and the HSE supports the increased use of generics where this is appropriate.

In 2008, expenditure on proprietary drugs where there was an equivalent generic available under the GMS, Drugs Payment Scheme and Long Term Illness Scheme was €227 million. The HSE estimates that there is a price differential of approximately 10% between off-patent proprietary drugs and their generic equivalents. This suggests that approximately €23 million in savings per annum could be made if there were full substitution of products supplied under the GMS, Drugs Payment Scheme and Long Term Illness Scheme. Greater savings would, of course, arise if the prices of generic products on the Irish market were to be reduced. The HSE is in discussion with the Association of Pharmaceutical Manufacturers of Ireland (AMPI) representing the generic manufacturers, to examine ways in which efficiencies in the generic supply chain can be passed on to the State and to consumers through lower prices.

A group, chaired by Dr. Michael Barry, and comprising representatives of my Department, the Health Services Executive and the Irish Medicinal Organisation, is currently overseeing the implementation of specific measures that would deliver more cost effective prescribing by GPs, greater use of generic preparations and quality prescribing indicators.

My Department and the HSE are continuing to examine all aspects of pharmaceutical expenditure with a view to containing costs.