us drug prices continue to rise, but savings on horizon

PharmacoEconomics & Outcomes News 321 - 14 Jul 2001

US drug prices continue to rise,but savings on horizon

One-third of the rise in total prescription costs for theperiod 1999–2000 can be attributed to increasing drugprices, according to Express Scripts, reports the PinkSheet.1

Based on data from their ‘2000 Drug Trend Report’,drug price inflation increased 5.4% over the 1-yearperiod, making it the single largest driver of the costtrend. Specifically, drug price inflation was 5.4% forbrandname drugs and 7.1% for generic drugs. Theoverall figure takes into account the cost differential thatarises when switching from brandname drugs to theirgeneric counterparts. Meanwhile, the US pharmacybenefit manager Merck-Medco predicts an‘unprecedented opportunity’ to quash increasingprescription drug costs as drug patents expire.2 Therapid uptake of generic versions of brandname productsby formularies in the US will be the primary means ofkeeping the growth rate in drug spending in check, itsays.1. Drug price inflation accounts for 33% of Rx cost increase - Express Scripts.

FDC Reports - Pink Sheet - Prescription Pharmaceuticals and Biotechnology 63:11, 2 Jul 2001.

2. Merck-Medco foresees savings from patent expiries. Scrip : 10, No. 2656, 29Jun 2001.

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PharmacoEconomics & Outcomes News 14 Jul 2001 No. 3211173-5503/10/0321-0001/$14.95 Adis © 2010 Springer International Publishing AG. All rights reserved