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Generics Saved U.S. Nearly $200 Billion Last Year

08/03/12

  01:09:23 pm, by MedBen5   , 181 words,  
Categories: News, Prescription

Generics Saved U.S. Nearly $200 Billion Last Year

Generic Savings By Year

Generic drugmakers are basking in the glow of good news: A new report from the Generic Pharmaceutical Association states that the use of generics over brand-name drugs reduced U.S. drug spending by $193 billion in 2011 and more than $1 trillion over the past decade (see chart).

According to the Pharmalot blog, the report noted that the 22% rise in savings last year marked the largest single-year increase since 1998. The increase was attributed in part to expiring patents for such major brand-name drugs as the Lipitor cholesterol pill, the Zyprexa antipsychotic, and the Concerta ADHD medication. Additionally, generic versions of antidepressants, anticonvulsants and cardiovascular drugs accounted for 57% of the annual savings.

The report also found that generics that have entered the market since 2002 represented $481 bilion of the total savings. And in 2011, roughly 4 of every 5 prescriptions written in the U.S. were for generics, but they accounted for only about one-quarter of total drug spending.

As more brand-name medications lose patient protection, more generic drugs will take their place. As a result, generic utilization wll reach almost 87% by 2015, predicts IMS Health, which compiled the report.

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