The head of the European Commission’s troika mission, Mr Istvan Szekely, EC Director of Economic and Financial Affairs, told the delegation of Fine Gael and Laour TDs that pharmaceutical drug costs were an outstanding issue and were ‘not sustainable’.

Savings have been proposed by Health Minister Dr James Reilly through a review of medical cards and through work-related savings. But the troika believes there are still substantial savings to be made through increased use of generics, which would be ‘less painful’ than medical card changes.

Penetration of generics into the Irish market is amongst the lowest in Europe, with current use of generics at a mere 18% of prescribed medicines [1].

Some progress has been made. Ireland introduced a new bill – Health (Pricing and Supply of Medical Goods) Bill 2012 – on 16 September 2012 to introduce a system of reference pricing and generics substitution in Ireland [2]. The first drug to be subject to the reference pricing system, high-cholesterol treatment atorvastatin, has already produced price reductions of 70% for the Irish Health Service Executive (HSE). Reference prices are being introduced on a phased basis and the next drug in line is proton pump inhibitor esomeprazole.

The move to reference pricing is expected to ‘result in significant reductions in the price of generics which are currently amongst the highest in Europe at 50% above the European Union average and up to three times the UK price’, according to Irish Pharmaceutical Healthcare Association (IPHA) Chief Executive, Ms Anne Nolan.

Despite the move to reference pricing, Mr Szekely’s comments increase pressure on Dr Reilly to rein in pharmaceutical firms, hospitals’ and doctors’ practices and negotiate a greater and cheaper use of generics throughout Ireland.

Related articles

Generics policies in Europe have room for improvement

Generics substitution: Ireland’s plan for reference pricing

References

1.  GaBI Online - Generics and Biosimilars Initiative. Use of generic medicines in Ireland [www.gabionline.net]. Mol, Belgium: Pro Pharma Communications International; [cited 2013 Nov 22]. Available from: www.gabionline.net/Generics/Research/Use-of-generic-medicines-in-Ireland

2.  GaBI Online - Generics and Biosimilars Initiative. Cost savings from use of generic medicines in Ireland [www.gabionline.net]. Mol, Belgium: Pro Pharma Communications International; [cited 2013 Nov 22]. Available from: www.gabionline.net/Generics/Research/Cost-savings-from-use-of-generic-medicines-in-Ireland

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