Generic substitution generates savings in South Africa

Generics/Research | Posted 20/05/2011 post-comment0 Post your comment

Savings of 9.3% over the 3-year study period could have been made with generic substitution of antidepressants according to research carried out by the School of Pharmacy at the North-West University, South Africa.

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The study, which was carried out during 2004–2006, showed that with complete substitution, savings of 9.3% in antidepressant costs for the 3-year study period were possible. This translated to a 0.4% saving for the total database. It was however noted by van der Westhuizen et al. that total substitution would be unlikely as in 40–60% of cases prescribers and patients would opt for the innovator or brand-name product [1].

With a substitution rate of only 40% of innovator antidepressants with generic equivalents, a cost saving of more than two million South African Rand or 0.16% over the three-year study period would still have been possible.

The authors therefore concluded that substitution of cost-driving medicines with less expensive generic equivalents has the potential to significantly reduce medication costs, and thus healthcare costs, in the private healthcare sector in South Africa.

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Reference

1. van der Westhuizen E, Burger JR, Lubbe MS, Serfontein JHP. Further potential savings attributable to maximum generic substitution of antidepressants in South Africa: A retrospective analysis of medical claims. Journal of Interdisciplinary Health Sciences. 2010;15(1):1-5.

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