First posted: 08/12/2011
Danish generic medicines policy has created conditions fostering a low-price, high-volume generic medicines market .
Market shares of generic medicines in terms of value of consumption have decreased from 39.3% in 1994 to 23% in 2009 as a result of falling prices of generic medicines. This has been accompanied by a slight decrease in the volume of consumption of generic medicines, with market shares falling from 61.3% in 1994 to 57% in 2009 .
Source: 1994–2004 , 2005–2009 .
Denmark has in principle a free pricing system for generic medicines . Generics need only to be priced below the originator price to qualify for reimbursement .
Highlights of the generics market in Denmark
- Market share of generic medicines by prescription is 57%, but only 23% in value .
- The reference pricing system and generics substitution by pharmacists reward generic medicines companies that set competitive prices for an active substance with high sales .
- Physicians tend to have a favourable attitude towards generics substitution by pharmacists and face non-financial incentives to prescribe generic medicines .
- Strong price competition and low prices could endanger the long-term sustainability of the generic medicines industry .
- Free pricing of generic medicines .
- Generics companies compete with each other on price, driving prices down.
- Public expenditure on medicines in Denmark has been reduced by Euros 15 million a year since generics substitution was implemented .
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