Generic Substitution In Australia From December 1

Australia's Minister for Health, Carmen Lawrence, has announced that from December 1, pharmacists will be permitted to dispense cheaper alternative generic versions of 120 branded drugs on the Pharmaceutical Benefits Scheme, under an amendment to the National Health Act, unless the prescribing doctor has written "not for substitution" on the prescription form.

"In many cases," said Dr Lawrence, "consumers have been paying more than they should." The federal government spent over A$1.8 billion ($1.3 billion) on subsidizing 106 million prescriptions last year, out of a total of 146 million prescriptions written. At present, 90%-92% of prescriptions are estimated to utilize brand names.

The president of the Australian Medical Association, Brendan Nelson, has been quoted as saying that he "understood" that drug companies would supply general practitioners with rubber stamps printed with the words "not for substitution," for use when the scheme is introduced. In an interview with the Sydney Morning Herald newspaper, he denied that he or the AMA were seeking stamps to be used in this way to prevent generic substitution, but added that GPs would "either have a stamp or scrips already stamped."