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Savings from generic medicines use Posted 04/05/2010

The Sustaining Generic Medicines Markets in Europe report (April 2006), produced by the Research Centre for Pharmaceutical Care and Pharmaco-economics and authored by Professor Steven Simoens and Mr Sandra De Coster, offers a country-by-country analysis of generics markets in Europe and discusses factors both hindering and aiding the development of generics markets.

The last section of the report offers a data-driven illustrative example of how generic substitution can result in significant cost savings in countries. It does this by presenting data from 2004 for several EU countries discussed in the report. The data lists the top 10 drugs (8 in the case of Poland) by public expenditure, including the savings that could be had were generics substituted for these brand-name drugs. The analysis assumes a 95% generic substitution rate.

Results are compelling and point to a 21% savings in Poland to 48% in Denmark. The table shows, of the countries surveyed, the brand-name drug with the highest public expenditure in each country and the amount of savings that could be made were a generic substituted for that drug in that country.

Table: Potential savings in EU countries from generic substitution for top drug

Country	Brand-name drug with top public expenditure	Public expenditure in Euros	Potential savings from generic substitution
Austria	Lisinopril	33,545,548	7,973,247
Belgium	Pravastatin	67,863,755	45,053,083
Denmark	Metoprolol	19,289,107	4,833,861
France	Omeprazole	446,515,016	117,723,086
Germany	Hydrochlorothiazide	743,868,532	481,855,404
Italy	Ceftriaxone	125,640,866	45,480,174
The Netherlands	Pravastatin	67,314,038	29,605,918
Poland	Simvastatin	10,088,853	623,500
Portugal	Ethinylestradiol	47,817,774	40,705,211
Spain	Paroxetine	132,429,541	29,471,752
United Kingdom	Pravastatin	173,926,201	1,827,321