The value of brands

Farmaindustria has published an interesting decalogue on the value of brands.

It is important to strengthen the role of brands as industrial property and business assets that strengthen competitiveness in the market and inform us about their attributes.

They highlight the main points:

• The prescribing physician may prescribe by brand in accordance with current legislation. There is no obligation to prescribe by active ingredient, so doctors may choose to prescribe by brand or by active ingredient, except in the case of non-substitutable drugs, which must be prescribed by brand.
• The patient can ask for a brand. The patient has the right to request and obtain health information and to know their available options. Once the patient has received the information, they can consider the patient’s right, as jointly responsible for their treatment, to request the prescription of a brand name drug.
• Prescribing by brand is not more expensive for the NHS or for the patient. Generic and brand-name drugs are the same price since the reference pricing system and the formation of homogeneous groupings make the price of both options equal.
• Prescribing by brand improves drug identification. It is often more easily remembered than the active ingredient, facilitates drug safety, and fosters medication adherence as it prevents changes in dispensing and helps stabilise treatment.
• Companies that market brand-name drugs responsibly keep a full range of formulations available. The entire range of formulations is sold for the viability of the brand. If the brand is weakened due to prescribing by active ingredient, some formulations could disappear.
• Small and medium-sized companies can help reduce the shortage of certain drugs. These companies can minimise classic drug shortages without generic competition. They have the expertise and capacity to do so but must be able to be recognised through their brand.
• Brands contribute to the development of Spanish companies. They are a true business asset that allows them to differentiate their products and compete in the market. Brands contribute to strengthening companies that generate job opportunities, engage in productive activity, and carry out incremental research. In short, they are of strategic and economic importance for Spain.

This post is also available in: Spanish