GENAS, Ružinovská 42, 821 03 Bratislava,
tel. 00421-2-48 200 600, fax. 00421-2-48 200 650
IČO: 36060593, DIČ: 2022041868
Meeting MOH on proposed price cuts for the pharmaceutical industry, 9 Jan 2007
GENAS viewpoint
Cost by cause principle
GENAS stated on the meeting with MOH on 9 Jan 2007, that solidly price cut of
which percentage ever cannot be accepted. All generic companies contribute
to Health care savings since 2003 almost quarterly, there is no space any more.
The current significant rises in costs are caused by a few big blocks only (Metoo products, oncology, diabetes...) Opposite to Generics products in Slovakia
(at the lowest European benchmark levels) those products achieve generous
prices.

Generic producers in Slovakia provide approx. 70% of treatments (boxes) for
approx. 45% of costs only.

The 2003-2006 Healthcare reforms effected a disproportional pressure on
Generic manufacturers why today the prices of Generic drugs in Slovakia rank
among the lowest in Europe  the impact on potential further Generic price
cuts must be considered very questionable

It is our clear understanding that Generic drugs significantly create financial
reserves within existing healthcare budgets, which can be allocated to real
innovate drugs. Unfortunately the current Slovak reimbursement system
provides extraordinary financial benefits to analogue drugs also, which cannot
be seen as innovation at all. These so-called “me-too” drugs receive full
reimbursement for multiple (!) prices of patent free generics, without any
significant medical advantage.

Life expectancy in the Slovak republic currently ranks significantly below the
EU-average, but also below countries like Czech Republic. (CR: 72,1
male/78,5 female versus SR: 69,5 male/77,6 female) These alarming figures
also correlate with the statistically lower consumption per capita of established
standard drug regimes in Slovakia. An increased usage of generic drugs will
contribute to help to fill this gap without strong impact on total drug
expenditures. Nevertheless the aspired higher consumption of drugs per
capita must be related in increased costs from payer side.
The graph below shows – representative for many blockbuster moleculesthe benefit of generic products for the Slovak healthcare. For the same costs
like in 2000 almost 6 times more patients could be treated in 2006 with
Amlodipine:
Kontaktná osoba: MUDr. Monika Laššánová, vedúca kancelárie GENAS
Segnerova 5, 841 04 Bratislava, 0905236107, [email protected]
GENAS, Ružinovská 42, 821 03 Bratislava,
tel. 00421-2-48 200 600, fax. 00421-2-48 200 650
IČO: 36060593, DIČ: 2022041868
2 138 096
Year/06
215 791
1 940 401
Year/05
242 161
1 731 794
Year/04
1 374 637
Year/03
931 643
Year/02
547 475
Year/01
385 433
Year/00
0
324 599
369 103
282 937
301 520
211 035
500 000
1 000 000
Units (Absolute)
1 500 000
2 000 000
Skk (Thousands)
The same impact could have been observed in other molecules of high
importance, both from medical as from cost point of view:
.
Kontaktná osoba: MUDr. Monika Laššánová, vedúca kancelárie GENAS
Segnerova 5, 841 04 Bratislava, 0905236107, [email protected]
2 500 000
GENAS, Ružinovská 42, 821 03 Bratislava,
tel. 00421-2-48 200 600, fax. 00421-2-48 200 650
IČO: 36060593, DIČ: 2022041868

GENAS stated on the meeting with MOH on 9 Jan 2007, that solidly price cut
of which percentage ever cannot be accepted. All generic companies
contribute to Health care savings since 2003 almost quarterly, there is no
space any more.
The current significant rises in costs are caused by a few big blocks only (Metoo products, Oncology, Diabetes ...) Opposite to Generics in Slovakia (at the
lowest European benchmark levels) those products achieve generous prices.
(according to the “cost by cause principle”)

Further price cuts on Generic drugs might have to go hand in hand with
subsequent reduction of Medical representatives in our companies. In other
words, the Generic companies would have to reduce a workforce of some
hundred qualified persons which help us and the public healthcare system to
convince doctors about the rationales, why to use generic drugs. The created
misbalance would lead to a significant higher share of voice originator
companies and increased costs for the healthcare system.
•
Extreme price erosion on „exchangeable“ molecules, whereas less contested
(even less established, older) molecules occupied comfortable niches
The 2003-2006 Healthcare reforms effected a disproportional pressure on
Generic manufacturers:
•
•
Drug consumption in too many therapy groups below EU average
 Generics as a powerful tool to treat significantly more patients for similar
costs
Plans on generic substitution have to be considered counterproductive
considering required Gx marketing activities  without adequate promotion by
Generic producers, prescribers will switch to patent-protected, more
expensive drugs (incl. „me too“ molecules)
Christian Wieser
Predseda GENAS
Kontaktná osoba: MUDr. Monika Laššánová, vedúca kancelárie GENAS
Segnerova 5, 841 04 Bratislava, 0905236107, [email protected]