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Generic Substitution - The Proposed Procedure for the Prescription of Pharmaceuticals in Finland

s a result of the discussions surrounding the pricing of pharmaceuticals in connection with the budget year 2003, the Finnish Government has suggested a procedure for generic substitution which, if approved by Parliament, will mean that pharmacists, as a rule shall exchange the pharmaceutical prescribed for the cheapest bioequivalent alternative. The purpose of the suggested procedure is to curtail the rising costs of pharmaceutical products by supporting the use of cheaper generic pharmaceuticals.

The Finnish pharmaceuticals market has traditionally been one where original pharmaceutical products have a strong foothold and the market for generic products, when introduced, has not taken as significant a portion of the market as in several other European countries. This situation may change through the new initiative.

The Government proposal regarding legislation governing generic substitution was presented to the Parliament of Finland on 27th September 2002. Provided that the Parliament approves the proposal, as of January 2003 Finland will follow the example of several other Nordic and European countries by implementing a procedure for generic substitution. The core of the proposal is that the pharmacies would be required to substitute the pharmaceutical prescribed by a medical doctor with an interchangeable and generally available product with the lowest price or a price only slightly differing from the lowest price.


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By Rainer Hilli, Partner and Tom Groop, Associate of Roschier Holmberg Attorneys Ltd
Rainer Hilli is a Partner of Roschier Holmberg Attorneys Ltd and heads the Technology, Media and Competition practice group, maintaining a high specialisation in matters relating to copyright, patents, trademark designs, computer law, telecommunications law, media law, market law and life sciences.

Mr Hilli is a member of the firm's Pharmaceuticals and Biosciences specialist team, and regularly advises pharmaceutical, biotechnology, biocomputing and other life sciences companies to manage exploitation of intellectual property rights. His expertise includes R&D, funding, licensing and regulatory matters, as well as national and cross-border patent and trademark litigation.

Tom Groop is an Associate of Roschier Holmberg Attorneys Ltd and a member of the Technology, Media and Competition practice group, as well as the firm's 16-strong Pharmaceuticals and Biosciences specialist team.

He specialises in life sciences and intellectual property rights and is experienced in both contentious and non-contentious work, including pharmaceutical and patent litigation.




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