Apotex has announced that it will delist three medicines from the PBS due to the impact of PBS pricing reforms.
According to a statement from the company, the "move follows months of ongoing, significant and widespread price reductions and Pharmaceutical Benefit Scheme (PBS) changes imposed by the Government across the broader pharmaceutical industry."
Apotex products to be removed are (including anticipated exhaustion at wholesaler level):
- Paracetamol/Codeine Tablets 500mg/30mg Blister Pack 20 (early Q4 2016);
- Cephalexin Suspension 125mg/5ml Bottle 100ml (mid-late Q4 2016); and,
- Cephalexin Suspension 250mg/5ml Bottle 100ml (mid-late Q4 2016).
Alternative brands remain on the PBS.
Apotex Managing Director, Roger Millichamp, said Apotex has been incurring sustained losses by supplying these particular products under current legislated PBS pricing regimes.
“Apotex has a long history of litigation and bringing generic medicines to market, which has delivered considerable savings to the PBS.
“However, ongoing price reform pressures have placed these particular products’ pricing to customers at less than the cost of product manufacture,” said Mr Millichamp.
“While Apotex is committed to and supports ongoing reliable access to affordable generic medicines, a strong PBS, and a sustainable generic medicines sector for patients, continuing price reductions could compromise the industry’s ability to ensure patients continue to have access to essential medicines in the future.”
Mr Millichamp said although it was a tough decision to make, the impact of legislated pricing reform has resulted in significant losses for some Apotex-supplied products which cannot be sustained.
Apotex said it continues to be an active contributor to the Generic Medicines Working Group and its discussions with Government, and is working with its customers to allow them to make alternative supply arrangements. The viability of the generic and biosimilar sector is being considered by the Working Group.
Apotex’ over the counter paracetamol and codeine products will not be affected by the deletions, and will remain available in the market.
