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No
generics without originals
A few notes by SAFS on the original
drug development costs.
Considering prices of original drugs it is necessary
to realise that although the economic aspect of this
issue is very important, we always have to study patient's
needs firstly.
Registration of a new original molecule in Slovakia
makes it easier for generic drugs to penetrate the market.
According to the Law on drug, generic drugs are no longer
patent-protected and comparing to their original they
have the same quantitative and qualitative structure
and equivalent drug form. Moreover, they need to be
biologically equivalent - bioequivalent. According to
the EU legislation, which has already been implemented
to the Slovak Law on drug, generic drugs can be registered
in Slovakia using referenced application (application
with a reference to the original drug). If patent protection
of the original drug and vested data protection period
have expired, it is not necessary for the generic industry
to submit part II. (toxicological and pharmacological
testing) and part IV. (clinical testing) with the reference
to the original drug registered in Slovakia.
Quality of domestic as well as imported drugs is guaranteed
by the State institute for Drug Control. The Institute
examines samples submitted by the producer and occasionally
it also controls their batches. As a result, the production
costs of generics are exceptionally lower. Generic producer
does not have to invest neither into research and development
nor into subsequent drug safety monitoring. There is
no need for him to make any pre-clinical or clinical
research. He is usually seeking an alternative for original
substance synthesis and afterwards he begins to produce
it. In some cases he only purchases raw material from
a different producer and from that he produces a particular
drug form. In the registration process he may use the
outcomes of clinical testing conducted by original producer
and on the local market also the findings of its marketing
department. Generic drug enters a "built market"
without risk of non-using the molecule.
According to the renowned centres dealing with drug
R&D cost analysis, the price of one new molecule
that reaches the phase of market entrance has risen.
While in 1997 its value was 459 million USD (Myers&Howe),
in 2001 the price was 802 million USD (Tufts Center
for the Study of Drug Development). This intense growth
of inevitable investments, of course, results into increased
market prices of innovative drugs.
An important aspect with generic drugs launching is
drug cost of the healthcare system. The truth is that
generics are from obvious reasons less expensive. But
recent analyses show that in countries where prescription
of generics has reached a higher market share, the prices
of these drugs have increased too (E.g. Great Britain).
In negotiations with price committee, Ministry of Finance,
in Slovakia, generic producers are suggesting prices
higher or equivalent to the prices of originals. This
is not common neither logic. The main reason for launching
generics should be price substantially lower in comparison
with originals.
We have to note that the starting point in Slovakia
in 1989 was 100% generic market and foreign medicines
unavailable for the most of the population. An optimist
sees a bottle half-full, while a pessimist calls it
half-empty. That's how we can describe changes, which
took place in the next period. We understand this development
as positive, because patients can now have drugs which
are corresponding the therapy level in the outer world.
Western countries promote these days strategies for
generics launching. The contribution of these drugs
to overall consumption is around 20% in terms of value
(IMS 2000). In Slovakia it reached 46% (IMS 2001). This
expression can be easily influenced by the methodology
used. According to a SAFS study, in which we have calculated
consumption of "pure originals" (originals
that have no generic substitute) in DDD - Daily Defined
Doses. In second trimester 2001 the overall drug consumption
consisted of 65% generics and 35% originals, from which
only 25% have no generic substitute.
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