BRIEF—Competition lowers generics prices, says FDA analysis

The US Food and Drug Administration (FDA) has published a new analysis confirming that greater competition among generic drugmakers does drive down prices.

This analysis updates and expands on a previous analysis from 2005 and includes two different sources of wholesale drug prices – average manufacturer prices reported to the Centers for Medicare and Medicaid Services and invoice-based wholesale prices reflecting pharmacy acquisitions from IQVIA’s National Sales Perspective database.

Drug products that had initial generic entry between 2015 and 2017 were considered in the analysis.