Generic substitution generates savings in South Africa

Genéricos/Investigación | 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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The status of generic substitution in South Africa

Savings due to generic substitution in South Africa

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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