More uptake of generics "helps counter brand drug price inflation" in USA: Medco

In the USA, brand name drug price inflation hit its highest level in five years, but increased use of generic copies limited prescription  medicine spending growth to 3.3%, according to a new report from Medco  Health Solutions. Specialty drugs, which include brand name, high-cost  biologics, accounted for 60% of that growth.

Medco's drug trend - a measure of spending growth that tracks the  year-over-year increases in prescription expenditure among its client  base - faced pressure from brand name price inflation that topped 8% in  2008. Generics, however, accounted for over 64% of all scripts  dispensed last year, dampening the impact of rising brand-name prices  and specialty drugs as clients and members seek lower-cost options. A  recent AARP study made similar findings (Marketletter April 27).