Teva UK Limited – adding value to the NHS

Teva UK Limited
– adding value to the NHS

Everybody’s feeling the crunch at the moment and this is particularly evident in the NHS. As generics become increasingly important in the delivery of healthcare, we speak to Teva’s Managing Director, John Beighton, about the company’s generics business and how this kind of promotion differs to patent-protected medicines.

The cost of medicines has been a topic of particular interest over recent years. Healthcare systems worldwide are attempting to cut costs and a more limited budget for treatments in the UK means that some new products are not recommended for NHS funding.

It was revealed that in 2006 the NHS spent more than £8 billion on medicines in primary care alone. The National Audit Office (NAO) announced last year that more than £300 million a year could be saved through more efficient prescribing on the part of healthcare professionals.

One solution to this is generic products – generic versions of well-known treatments that are released once the patent has expired on the branded original. These are also subject to strict regulatory requirements, but save the NHS significant funds, which can then be used to pay for new innovative treatments launched by the pharmaceutical industry.

Recognising the potential for cost cutting, many PCTs now encourage the use of generics wherever this will not negatively impact patient care. It is estimated that British GPs currently prescribe one of the highest levels of generics in the world – 83%.

“The needs of the patient always come first,” says John Beighton, Managing Director, Teva UK Limited, “but if the doctor has access to affordable, effective treatments that add value, then surely no-one can argue with that? There are many common ailments and many established generic medicines to treat them.”

Pharma’s poor relation?

Twenty years ago, just 35% of prescriptions in the UK were written generically, so the use of these cheaper medications has considerably increased.

This is partly due to increased price pressures, but also to the expiry of patents over recent years.

The 1970s and 1980s were particularly strong years for the development and launch of new chemical entities onto the market. As these patents have expired and companies have launched generic versions of the medicines, more of these cheaper alternatives have been used and the prices have been driven downwards. This in itself provides a spur for innovator companies to produce and invest in next generation medicines. John explains how the perception of generics has altered during this time: “The generics industry itself has also come a long way in the past 20 years. It was previously seen as the poor-relation, but generic medicines are now an integral part of the delivery of healthcare.”

A unique position

As the UK arm of the largest generics company in the world, and the company that supplies more packs of medicines to the NHS than any other, Teva UK Limited plays a significant role in the generics market in the UK. Teva’s parent company Teva Pharmaceutical Industries enjoys a firmly established international presence and had annual sales of $9.4 billion in 2007.

Teva UK Limited produces 550 products across all major and most minor therapy areas through its three commercial business units – Teva Generics, Teva Hospitals and Teva Primary Care. Its coverage of the generics market is such that Teva Generics can provide over 90% of a pharmacy’s generic prescription needs.

As a company that promotes both branded drugs and generics, Teva is in a unique position in comparison with many pharmaceutical companies. Market research has shown that there is a real demand among PCTs for the hybrid approach offered by companies like Teva, as healthcare professionals seek guidance on patent expiries and options for keeping costs low.

A value-added approach

“You have to be competitive in the generics marketplace, but you also have to have something that makes you stand out from the rest of the pack, value-added aspects, if you like,” says John. “We can compete on price, but you need to differentiate yourself and become the customer’s trusted partner.”

Being able to offer this hybrid approach to generics and brands means that salespeople working for Teva are able to provide a valuable service to their customers and be business partners with PCTs in helping them to achieve their goals, whilst delivering highquality patient care.

When promoting generics, a sales executive is offering considerable savings to the PCT. However, the fl ip-side to this is that they are not marketing an original product, and other generic versions of the same medicine may be available. To address this, Teva provides a range of value-added services to its customers that both encourage and reward loyalty.

“We do this in a number of ways, including our award-winning Teva Generics medicines packaging, our loyalty schemes which save healthcare professionals time and money, and our Partners in Progress initiative that aims to help pharmacists make the most of the opportunities available to them under the Pharmacy Contract,” adds John.

The future of pharmacy

As price pressures increase, pharmaceutical supply decisions are increasingly made by commissioners rather than doctors and further significant medical innovations reach the end of their patents, the importance of the generics market will continue to develop.

However, one of the main advantages of generics is that they free up resources to invest in newer treatments. “There will always be a place for innovative, patent-protected medicines at a reasonable cost,” says John. “We would urge healthcare commissioners and prescribers to make the best use of generic medicines, but it is for the describer to decide what is best for the patient.”

So, what does the future hold for Teva Generics? “You can certainly be assured that Teva doesn’t intend to stand still – particularly given that pharmacy is moving so very quickly at the moment. It’s interesting you mention the future, because that’s the way we’re facing.”