GPhA slams mischaracterized facts about generic drug pricing

Commenting on recent evaluations of generic drug prices, Ralph Neas, president and chief executive of the US Generic Pharmaceutical Association (GPhA) argued that generic medicines are a critical part of system-wide efforts to hold down health care costs.

He said: “Indeed, the world’s leading health care analytics firm, IMS Institute for Healthcare Informatics, found that generics saved $239 billion in 2013 (a 14% increase in savings from 2012) and more than $1.46 trillion over the recent decade. Further, the Express Scripts 2013 Drug Trend Report issued in 2014 shows that since 2008, the price of brand drugs has almost doubled, but the price of generic drugs has been cut roughly in half. Generic manufacturers can proudly point to a legacy of savings and access that will continue to bring expensive treatments within reach for millions of people.”

That is why, he stated, the GPhA is disappointed at how some have mischaracterized the facts about generic drug prices. Their data is missing one crucial element: perspective. The examples cited by the Healthcare Supply Chain Association (HSCA) on recent purchases by group purchasing organizations (GPOs) focuses on 10 drugs in a marketplace of more than 12,000 safe, affordable generic medicines. In fact, thousands of generics have seen significant price erosion over time due to the competitive nature of the marketplace. One such example is that of Lipitor (atorvastatin) – for which generics have saved all involved an estimated $7 billion per year. In addition, many generic prices are so low that thousands of stores across the country offer them to consumers for four dollars or even for free, he said.