Key drivers determining drug pricing and volume trends are the second year of Medicare Part D programs, brand-name drug
patent expirations paired with rapid generic substitution rates, and possible increased political pressure from the change of political control of Congress.
won't sell samples of its brand-name drug
Ampyra, which improves multiple sclerosis patients' walking ability.
with looming patent expirations in 2006 alone had sales in 2004 that totaled greater than $20 billion.
With the average brand-name drug
costing double or triple the generic, we must continue to find ways to educate our members about generic drugs," Bailey said.
In addition, the law rewards exclusivity for a first generic version of a brand-name drug
, thereby encouraging generic firms to challenge innovator patents.
In a move announced by the White House itself, the FDA is changing its regulations in an effort to speed up the introduction of generic versions of brand-name drugs
The new site allows prescription drug plan participants to make side-by-side comparisons among prescription drugs and compare out-of-pocket costs between generics, brand-name drugs
and preferred brand-name drugs
In fact, it is estimated that as much as 42 percent of the cost for a brand-name drug
goes back into marketing and advertising the brand.
Generic drug manufacturers have filed lawsuits claiming that brand-name drug
makers are trying to keep generics off the market.
Empirical evidence confirms that discounts tend to be higher when a brand-name drug
faces competition from several similar brand-name competitors or from a generic copy.
If your doctor writes on the prescription form that a specific brand-name drug
is required, your pharmacist must fill the prescription as written.
The PMPRB reports that in 2009 brand-name drug
companies spent only 7.
Generic drug manufacturers don't have to pay as much as brand-name drug
manufacturers do for expensive research and development, sales, advertising and marketing.
Lichtmann points out that this scenario only applies to patients switching from a brand-name drug
to a generic drug (or from one generic product to another).
For example, generic drugs in some states account for nearly half of claims paid, "yielding considerable savings as the average cost of a generic is much lower than the cost of a brand-name drug
," the report said.