Big shifts in generics shares due to Dutch preference policy

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Big shifts in generics shares due to Dutch preference policy

Genéricos/Novedades | Posted 30/03/2010 0 Post your comment

The percentage of generic prescribing in The Netherlands increased in 2009 from 56.3– 57.1% according to the Dutch Stichting Farmaceutische Kengetallen (SFK), as published in Pharmaceutisch Weekblad of 12 March 2010.

The Dutch ‘preference policy’ (in which –if possible– there is a preference for prescribing a cheaper version of a medicine, provided it has the same efficacy as the brand medicine) caused big shifts in market shares of the various generics suppliers.

During the past ten years the generics market share in The Netherlands increased yearly by about 3.7%. The increase in generic prescribing is in line with the effort obligation that pharmacists accepted in covenants with the Dutch policy makers to stimulate the use of (cheaper) generic medicines. Apart from that, the preference policy perceptibly influences the generics market share. The fact is that the Dutch legislator gives the public healthcare insurers a margin for manoeuvre to limit insurance claims to ‘by-them-designated preferred medicine’. A remuneration right exists for medicines that have not been included in the preference policy, only in cases of ‘medical need’ for the patient. The prescriber then has to mention this on the prescription. Usually the healthcare insurers limit the liability to generic medicines, but it also happens that the liability is limited to a brand medicine if the insurer gets the most financial profit that way.

The designations within the preference policy of insurers –which per insurer have different starting dates and validity terms– have resulted in enormous shifts in markets shares of the various generics suppliers. It was found that in 2009 the Dutch generics market leaders lost market share, while small players specifically aimed at the preference policy gained ground in generics.

For example, the percentage of generic prescribing of Dutch market leader Teva Pharmachemie at Haarlem, The Netherlands, was almost 15% lower at the end of 2009 than at the beginning of 2007. And the second-largest Dutch generics supplier Sandoz at Almere, The Netherlands, saw its market percentage decrease by almost 20% in this period. Among the established suppliers, Apothecon more than doubled its share in generic prescribing. Ratiopharm experienced the biggest shift: thanks to the preference policy its market share strongly increased between July 2008 and January 2009, after which it decreased again to the lowest point in three years. Apart from this, relatively new players –such as Accord Healthcare, Focus Farma and Pharmacin– gained generics market share thanks to aiming at the preference policy with a relatively small assortment.

In 2009, the price level of generic medicines in the Netherlands was found to be more than 22% lower than in December 2008, this was particularly due to price reductions enforced by the Dutch preference policy. Compared to December 2007, the Dutch generics prices were found to be even 60% lower in 2009.

Reference

Stichting Farmaceutische Kengetallen (SFK). Grote verschuivingen in generiek. Pharmaceutisch Weekblad 145:10. 2010 March 12.

Source: Pharmaceutisch Weekblad