Statin prices: 20% crash confirmed

http://www.pharmainfocus.com.au/news.asp?newsid=1826

Posted 16 July 2007

The long-apprehended 20% cut in the PBS price of simvastatin is set to
bite next month, dragging numerous pravastatin brands down with it and
earning Ranbaxy the ire of fellow generics makers and pharmacists alike.

The August 1 PBS will see a 17.5% drop in simvastatin and pravastatin
prices, adding to a 3% cut that came into force in April.

However, it will not touch Pfizer's Lipitor (atorvastatin), still the
largest selling statin in Australia.

The simvastatin price slash was originally tipped to occur in April
following a proposal put to the government by the local arm of India's
Ranbaxy in November last year. The company had claimed that the lower
price of its generic simvastatin had potential to save around $40 to $50
million per annum in PBS outlays, based on IMS MAT Sep 06 units.

Around 15 companies ranging from the generic arms of Novartis (Sandoz),
sanofi-aventis (Winthrop) and GlaxoSmithKline (Real-RL) to generic
heavyweights Sigma and Alphapharm to Genepharm, GenRx and Generic Health
(formerly Bellwether) along with statin originators such as Merck Sharp
& Dohme and Bristol Myers Squibb are affected by the cut.

According to the annual report of the Pharmaceutical Benefits Pricing
Authority, the value of the statin market in Australia to June 30 2006
was $1.012 billion with Lipitor taking the lion's share at $579 million
followed by simvastatin at $357 million and pravastatin at $76 million.

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