Single source drugs driving high prices

    KEY TAKEAWAY: Over the past seven years, generic drugs increased their share of total prescriptions filled from 66 percent to 82 percent, while brand drugs’ share of total prescriptions declined from 34 percent to 18 percent.

According to the Blue Cross report..

Despite significant increases in the adoption rate for generics, brand drugs still comprise a dominant share of overall drug spending. As Exhibit 1 shows, generics have expanded from 66 percent of all prescriptions in 2010 to nearly 82 percent in 2016. The drop in the share of brand drugs, however, has not lessened their contribution to total prescription drug spending. In fact, that contribution has increased slightly from 77 percent to 78 percent. As generics approach 90 percent of all prescriptions, their rate of increase in share will inevitably begin to slow down. As a result, their ability to offset the rising cost of brand drugs through share growth will diminish.


This is old news as those of us who worked in the industry are aware.  Can pharma maintain this strategy?  Doubtful, but then again when has pharma ever been known as an innovative industry?

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