In 2001, the government passed a law that allowed generic substitution of branded medicines, provided that both doctor and pharmacists approved it, which has led to this upsurge. Generics must meet rigorous standards and are required to have the same identity, strength, quality, purity, efficacy and safety of its brand name counterparts. And today, close to 100-million prescriptions per annum are for generic medicines.
The increase in usage is a clear indication that consumer no longer view generics as inferior, and realise that they will reap the same treatment outcomes as they would from a brand name medication.
In addition, generic medicine has not only saved the South African healthcare sector billions, but has increased access to affordable medicine for millions of patients. “When you’re on a chronic medication regimen, the brand names can get very expensive, whereas patients can save as much as 80% on medicine by using generic alternatives,” says Erik Roos, CEO of Pharma Dynamics.
Medicines are major contributors to the health and well-being of individuals and populations when used appropriately, but also count among the top sources of waste of scarce health system resources.
Wastage is largely due to, but not limited to, the underuse of quality generic products. The sustainability of the healthcare system depends significantly on the availability of affordable medications. Every 1% increase in generic usage is estimated to equate to a saving of R270m.
Even though the state-funded public-sector purchases almost 70 to 80% of all medicines – mostly generics - in volume terms, it only represents 30 to 40% of the market in value terms.
On the other hand, the private sector, comprising healthcare insurers, medical schemes and other private sector healthcare funding – purchases almost 20 to 30% of medicines by volume, but represents almost 60 to 70% of the value of the pharmaceutical market.
The highest generic uptake is for HIV/Aids (93.3%), oncology (88.5%) and non-prescribed minimum benefits (PMB) chronic (82.4%). The latter includes illnesses such as bipolar mood disorder and asthma. In other major disease classes, such as cardiovascular disease (CVD), generics also dominate.
While GPs (89.8%) comprise the largest providers, followed by courier pharmacies (83.7%), other providers (76%) and retail pharmacies (74.5%).
“As the gap between brand name medication and generics narrows, it will lead to a positive change in medicines availability, access, affordability and use,” says Roos.
