Around 60 generic medicines have been granted price increases this month, including a 133% increase for a common antibiotic
Through the Generic Medicines Working Group, the Generic and Biosimilar Medicines Association (GBMA) and Department of Health have been exploring the link between pricing policy and ongoing supply of everyday medicines, explains GBMA CEO Belinda Wood.
“GBMA has identified that as a result of price disclosure, the prices paid to manufacturers for a number of generic medicines was becoming unsustainable,” Ms Wood told the AJP.
“As a result, manufacturers were facing commercial decisions to cease supplying those medicines.”
To support the ongoing supply of commonly prescribed generics, price increases for around 60 medicines were applied on 1 December.
PharmaDispatch has constructed an analysis based on publicly available information on ex-manufacturer prices, since the Department of Health has not released the actual list of granted increases.
According to the publication’s analysis, four medicines were granted increases of 100% and over, including two presentations of antibiotic amoxycillin and one dose of chemotherapy oxaliplatin.
Almost 20 medicines were granted price increases of between 50% and 100%, including the antibiotics cephalexin, vancomycin, ampicillin and doxycycline.
The price increases are a win for patients, says Ms Wood, since they “support the ongoing supply of everyday medicines”.
“The win for GBMA is that the increases demonstrate the value of a Strategic Agreement and that through collaboration and an evidence-based approach, positive outcomes for patients can be achieved,” she adds.
The Pharmacy Guild of Australia is supportive of the price increases.
“They are good for the sustainability of the PBS in terms of keeping the generic medicines industry viable in Australia,” a spokesperson told the AJP.
The Department of Health has been contacted for comment.