Our guest speaker was Jo Boyce, a representative of the
pharmaceutical company Alphapharm, who provided members with a lively
presentation on 'Generic Pharmaceuticals'.
Jo's primary role is to inform the public and provide a
greater understanding of the generic industry and the reason why they are
fast becoming a big part of the pharmaceutical industry.
When talking about generic, one is talking patent-expired
medication, and currently in Australia drugs have a 25-year life or
competition-free period.
The original manufacturer has a number of options
available to them when the patent period has expired. They can cross-license
the product and manufacture it for other companies, while at the same time
continue to market the original product. By this process they are able to
protect their market share.
The only thing that is different is the box they are
packed in.
Another option is to allow other companies to use the
formula to manufacture their own product, but this must be performed under
government regulation and testing. The product must work in exactly the same
way as the original; it is just a different brand of the same drug.
When there is more than one brand of the same medicine,
the government will only subsidise up to the lowest price brand. The
customer will have to pay any excesses. Thus, if the generic brand is
cheaper than the original the customer will have to pay the difference.
Jo emphasised the fact that in Australia all generic
pharmaceutical products are the same as the original, because of strict
government regulation. They may be a different shape or even a different
colour but they will still work just the same as the original.
The average saving per prescription is $2.00. If the
Doctor does not specifically prescribe the original product, the choice is
always with the customer.
Jo concluded her presentation by answering a wide variety
of questions from members