The role of generic medicines in the Portuguese crisis

Abstract

This article will focus on the past, present and future of the generics market in Portugal, providing an overview of the main measures taken since 2000, the results achieved, as well as the new measures being prepared to increase the prescription, dispensing and utilization of generics. The generics market is consistently growing since 2000 and reached a market share of 21.4% in August 2011. The comparison of the first 8 months of 2010 and 2011 shows a total market decrease of 7.1%, a decrease of the National Health Service (NHS) expenses with medicines of 19.2%, around 200 Million€ and a generics market growth of 19.9%. The memorandum of understanding (MoU) established between the Portuguese Government and the Troika sets the goal of reducing the public health expenditure with hospital and ambulatory medicines from 1.55% of the gross domestic product (GDP) in 2010 to 1.25% of the GDP in 2012 and to 1% of the GDP in 2013. These reductions imply a decrease of 525 Million€ in 2012 (vs 2010) and around 942 Million€ in 2013 (vs 2010). In order to reach the savings with medicines established in the MoU, several measures are being taken at ambulatory level, like the 50% price reduction of the first generic in an active substance compared to the reference medicine; the removal of administrative barriers preventing the entrance of generics in the market due to intellectual propriety rights injunctions; the revision of the pharmacies remuneration scheme; the creation of guidelines for medicines’ prescription; the prescription by international nonproprietary name only and the revision of the four reference countries used for the medicines annual price revision. In conclusion, generic medicines can help Portugal overcome the crisis supporting the decrease of medicines’ public expenditure with medicines.