3rd-Qtr Rx Drug Prices Up 2.9%, Generics Fall 6.4%

US prescription drug prices rose 2.9% overall in third-quarter 1997,compared with third-quarter 1996, says IMS America's Quarterly Pricing Report. Brand-name drug prices grew 3.8%, while generics' prices fell 6.4%, the lowest rate in three years.

Generic drug prices fell at double-digit levels for most of 1995, 1996 and into first-quarter 1997, with a fall of 8.8% in second-quarter 1997. For branded drugs, the rate of rise is the same as in the first quarter of this year, and 0.4 percentage point higher than the second-quarter rate.

Prescription drugs' overall price growth was 2.3% in both 1997 first and second quarters, and at or below 2% for all of 1996. The Bureau of Labor Statistics says the industry-weighted Producer Price Index rose 2.7% in September 1997 vs September 1996, while the Consumer Price Index for all items rose 2.2%.