German Expert Backing For Generics And OTCs

Rainer Braun, pharmaceuticals specialist adviser to the German pharmacists' federation, the ABDA, says that to help the health funds save an estimated 5 billion Deutschemarks ($3.26 billion) on health spending in the long term, changes must be made to the drug prices regulation, the APV, to promote generics and self-medication.

Under the APV, pharmacy margins increased as product prices rose, he said, but a fixed percentage margin would end the pharmacists' incentive to supply expensive drugs. The ABDA proposes that all drugs included in the fixed-level price support regime should be subject to one fixed margin covering 60% of the market. The pharmacist could then advise the doctor on the choice of a value-for-money product without being personally economically dependent on its price.

However, Prof Braun said that at present the doctors have problems in coping with the rising tide of generics, and selecting from up to 35 generic copies of one active ingredient. Similarly, the pharmacist faces logistical and storage problems.