Business
Spending for generic drugs drops
NEWS IN BRIEF — Posted Dec. 29, 2008
Increased competition among manufacturers and lower prices have resulted in about $1 billion in decreased spending on generic medications for U.S. consumers and health insurers for the 12 months ending September 2008, according to a report by IMS Health.
That is happening even though use of generics is increasing. The report found that total spending on generic medications decreased by 2.7% to $33 billion, the largest decline in at least a decade.
The average price pharmaceutical firms charged wholesalers for generics decreased 8%, and consumer demand for the medications increased 5.4%, according to the report, released in December 2008.
IMS expects these trends to continue through 2012.
Note: This item originally appeared at http://www.ama-assn.org/amednews/2008/12/29/bibf1229.htm.
