Ireland still lags far behind European average use of generic medicines

Ireland still lags other European states in its use of money-saving generic prescription medicines despite recent improvements.

A new report finds that the volume of generic medicines used across Ireland has jumped by more than 70 per cent over the past decade. It now accounts for 57 per cent of all prescribed medicines compared with just 33 per cent 10 years ago.

However, Ireland remains far short of the European average for generic usage, which is 70 per cent.

Generic medicines are copies of branded medications that have since lost patent protection. In relation to newer-generation biologics, which are made using living organisms making precise copies impossible, generics – or biosimilars as they are known – are required be as safe and effective and work in the same way as the original drug.

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Medicines for Ireland, the industry body for the generics sector which commissioned the report from Iqvia Ireland, says effective government policy, legislative changes and the growing presence of generic drug makers in the Irish market have been behind the improved performance.

“Every time a generic medicine is dispensed, it represents a cost saving to the State and an opportunity for additional funding to be channelled to other areas of the healthcare system,” said Medicines for Ireland chairman Padraic O’Brien. “Now more than ever, a focus on quality and value is crucial for the State and the patients who rely on timely access to affordable medicines.

“The total spend by the HSE on medicines is the largest single item in the healthcare budget [apart from payroll costs] and yet, while there has been some progress in Ireland in the use of generics, it is still falling behind countries such as the UK and the rest of Europe who have much higher levels of generic medicines use.”

He said the Iqvia data showed that eight out of 10 of companies supplying the Irish prescription market were generic medicines companies.

While the Iqvia research does not address the issue of cost, a separate report produced last year by Medicines for Ireland found that the average reimbursed price of generic medicines was €6 compared with €38 for original branded product.

“The reimbursed price is the price paid by the State for the medicines and this average €32 price differential illustrates the very significant savings that remain available for the State to avail of through increased usage of generic medicines,” Mr O’Brien said.

He said the Framework Agreement on Supply and Pricing of Medicines 2021-2025 recently agreed by the Government and industry will mean greater use of generics by patients and will deliver substantial savings to the State. Those savings, Mr O’Brien said, are estimated to see the State spending “between €600 million and €700 million less for medicines than it would otherwise”.