The Pharmaceutical Journal
Vol 277 No 7420 p383
30 September 2006

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Category M has destabilised the UK generics industry

Introduction of Category M has threatened the sustainability of the UK generics industry, the British Generic Manufacturers Association claimed last week.

Speaking at the annual conference of the European Generic Medicines Association in Budapest, BGMA director Warwick Smith, said: “The risks to the industry’s sustainability have been exacerbated by frequent recalibrations by the Department of Health of the reimbursement prices for generics.”

One objective of the new system of reimbursement was to introduce greater stability into the generics market, he said. “The department’s actions have just brought about greater uncertainty in the market place. This has contributed to price erosion.”

Over the past year the market share of generics in the UK has risen by 5 per cent, but prices have fallen by 3 per cent, he added.