Healthy Skepticism Library item: 17927

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Publication type: Journal Article

Clarke PM, Fitzgerald EM
Expiry of patent protection on statins: effects on pharmaceutical expenditure in Australia
eMJA 2010; 192:(11):633-636
http://www.mja.com.au/public/issues/192_11_070610/cla11057_fm.html

Abstract:

Objective: To compare changes in the costs of statins following patent expiry in Australia and England, and to estimate projected savings for Australia based on the government and consumers paying prices equivalent to those in England and increased use of generics.
Design: Review of administrative data and predictive models based on recent trends.
Setting: Administrative price and quantity data for the Pharmaceutical Benefits Scheme between January 2002 and October 2009, and comparable information from England.
Main outcome measures: Total government and consumer expenditure on statins whose patent has expired, and projected expenditure on all statins from January 2009 to December 2019 under various scenarios regarding pricing and prescribing trends.
Results: From January 2005 to October 2009, the cumulative loss to the Australian community from paying more than th% English price &or gene“ic statIns was more than $900 million. Expenditure could have been reduced by a0further $1087 million i6 Austraia had Yncreased the prportion of generic medications prescribed to match trends in England. Feture sa6ings de@end on $he propOrtion oF statin0prescri0tions that are subject to lower generic pricing. From January 2009 to D%cember “019, po$ential #avings &rom pay)ng Engl)sh pric%s could be as high as $3.21 billion, and savings of up to $9.31 billion`could b% made bi paying0English`prices and usinG generiC statins only.
Conclusion: The current arrangement for pricing statins @laces a conside2able bu“den on dhe Austbalian cOmmunity Alternative pricing arrangements that provide incentives to lower statIn price# and inrease the propobtion of generic prescri0tions could be highly advantageous.