KUALA LUMPUR (July 15): The Ministry of Health (MOH) has rejected a claim that the government spent more on innovator drugs than generic medicines, saying generic medicines accounted for the bulk of its drug expenditure in 2025.

The ministry was responding to a report in the health news portal CodeBlue, which quoted Pharmaniaga Bhd (KL:PHARMA) as saying that the government spent about RM3.495 billion on medicines in 2025 and that spending on innovator drugs exceeded that of generic medicines.

Pharmaniaga, through its subsidiary Pharmaniaga Logistics Sdn Bhd, is the concessionaire appointed to manage the ministry’s medical supply logistics services concession.

MOH, in a statement on Wednesday, said its official records showed that total spending on medicines amounted to RM3.86 billion in 2025, covering all three government procurement methods — purchases through the medical supply logistics services concession, central contracts and direct procurement by MOH healthcare facilities nationwide.

Of the total, generic medicines accounted for RM3.01 billion, or 77.88%, involving 3,170 of the 3,982 types of medicines procured, while innovator drugs made up RM850 million, or 22.12%.

The share of procurement spending on generic medicines has also risen steadily, from 54.22% in 2021 to 77.88% in 2025, in line with the National Medicines Policy (DUNas), which prioritises the use of generic medicines, the ministry said.

MOH said the discrepancies were likely due to differences in data sources and procurement scope used in the analysis, noting that Pharmaniaga's figures were derived from IQVIA data and the company's internal analysis.

The ministry urged all parties to verify the accuracy of data, information sources and the scope of analysis before making any statements or drawing conclusions on medicine procurement.

“MOH continues to prioritise the procurement of quality, safe and effective medicines while ensuring that public resources are managed prudently and sustainably. The ministry will also continue to strengthen medicine procurement policies based on clinical needs and supply continuity assurance to ensure equitable access to quality medicines for all Malaysians,” it said.

The ministry reiterated its commitment to supporting the local pharmaceutical industry as part of efforts to strengthen the country's medicine supply security.

It noted that last year, spending on locally manufactured generic medicines rose to RM1.49 billion, accounting for 49.57% of generic drug expenditure, compared with RM1.14 billion or 44.21% in 2023.