According to a press release from the Generic Pharmaceutical Association, 65% of all prescriptions dispensed in the U.S during 2007 were generic drugs, up from 63% the previous year. The figures were compiled by IMS Health Inc., a public research firm, and released at the GPhAs annual meeting in Boca Raton, Florida on Tuesday.

Generic drug manufacturers to predict further gains in 2008, as brand name prescription drugs with over $20 billion in annual sales lose their patent protection. Capitalizing on efforts by health insurers, state governments, and consumers to control prescription drug costs, generic drug companies are becoming increasingly aggressive in applying to bring generic versions of popular brand name medications to the market.

Since 1984, generic drug makers have been permitted to apply for FDA approval to copy popular brand name drugs once their original patents expire or are ruled invalid. Being the first to apply can give a generic drug maker the advantage of market exclusivity, a significant edge in a competitive, low-margin industry. The FDA reports that between 2002 and 2006, the number of applications for generic drug certification have more than doubled.

More expensive brand name prescription drugs account for about 80 percent of all dollars spent on medication in the U.S. each year. Since generic drugs cost anywhere from 30% to 80% less than brands, the GPhA estimates that a 1% increase in generic use saves approximately $4 billion a year.

This entry was posted on Wednesday, April 8th, 2009 at 1:34 pm and is filed under Generic Drugs.