New generics pose potential shake up for sleep drugs, antihypertensives in USA

12 March 2007

If a new US analysis of the use of generic prescription drugs is any indication, there will be a heavy impact on the research-based pharmaceutical industry, but for patients needing insomnia and antihypertensive drugs there could be significant savings.

According to the analysis by Medco Health Solutions, the USA's leading pharmacy benefit manager, 55.2% of all medications dispensed to Medco members in 2006 were for generic medications - a 3.7 percentage point increase over the generic dispensing rate (GDR) of 2005. The analysis found that Medco's generic dispensing rate has increased 14.7 % since 2002. According to IMS Health, a 1% increase in generic utilization nationwide yields almost $4.0 billion in savings.

"There are an unprecedented number of brand name drugs going off patent representing more than $49.0 billion in sales through 2011," said Laizer Kornwasser, senior vice president of channel and generic strategy at Medco. "The savings opportunity for patients and payers is enormous and it's happening as Americans are recognizing that generic counterparts to these brand drugs are just as safe and effective. Consolidated generic dispensing rates will likely exceed the 60% range in the near future," he added.

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