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New dispensing fees to boost generic sales

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The newly proposed pharmacy dispensing fee structure by the Department of Health is likely to increase generic sales.

Paul Anley, CEO of leading generics distributor, Pharma Dynamics says the move throws open the door for a greater demand and more competitively priced generic medicines in South Africa.

“The fee structure provides a higher mark-up on less expensive medication, which will incentivise pharmacists to substitute with a generic equivalent, which is in the patient's best interest.

“Similar models are commonplace in Europe and North America where incentive schemes are used to encourage pharmacists to choose cost effective generic medication. This result in far higher market share for generics against their originator equivalents and in doing so also saves the state billions in healthcare spend.”

Anley estimates that in South Africa the use of generics saves in excess of R3.5bn a year and more aggressive use could increase that figure by a further R1bn.

“It is important to note that the regulations stipulate the maximum dispensing fee that can be charged by a pharmacist. Individual pharmacists may continue to adopt their own fee structures as long as they don't charge more than that which has been specified in the bill.

“In the wake of the changes we are calling on medical aids to review their reimbursement policies and reference pricing with the new dispensing fees in mind in order to control costs and ensure the affordability of medicines to patients,” concludes Anley.

For further information please contact either Brigitte Taim or Natasha Adonis on 021 448 7407.

 

-Issued by Lange Strategic Communications on behalf of Pharma Dynamics.

 

 
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