US generic sales value falls, despite volume rise

The US generic drug market shrank in terms of sales value from $34.0 billion to $33.0 billion in the year to September 2008, according to IMS  Health data (Marketletter January 5&12), despite a 5.4% volume growth  in the same period. The 2.4% spending cut on unbranded prescription  medicines reflects the considerable amount of competition between  retailers in this area. Overall, the share of copycat drugs has now  reached almost 64% of all prescriptions filled, prompting analysts to  forecast that pharmaceuticals will be the slowest expanding element of  health care costs in the next five years.

Murray Aitken, senior vice president of the health information  company, said that worldwide trends were a contributing factor: "the  global generics market has posted double-digit gains in recent years.  But in 2008, despite robust volume increases, we are seeing the first  significant decline in sales growth as manufacturers increasingly  compete in fierce price battles within most of the world's major  markets." He added that "aggressive competition and cost-containment  measures, enforced by both private and government payers," are factors  in the USA.

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