The patents for 7 of the 20 best-selling drugs are set to expire over the next couple of years, and once that happens, manufacturers will be free to make and sell cheaper generic versions of the meds. Considering that an estimated 15% of the population takes one of these drugs-including Lipitor (for cholesterol) and Plavix (blood thinner)—the impact will be huge.
Generic drugs typically cost a fraction of their brand-name equivalents-easily 20%, and as much as 80% less, according to the Associated Press. Whether patients are insured or not, pay co-pays or not, have deductibles on their drug coverage or not, there are cost benefits to be had once generics begin competing with the brand names that once held monopolies.
For example, Protonix, which is prescribed to treat severe heartburn and just went off patent, costs $170 a month. But the generic version runs a mere $16 a month. The average co-pay for generic drugs, meanwhile, is $6, compared to $24 for brand names.
An FDA study on generic drugs and competition in the marketplace shows that, in terms of lowering prices, some competition is good, while lots of competition is great. Average prices (of generic and brand name drugs) drop a smidge when there’s one competitor in play with the brand name, and they decrease by nearly one-half when a second competitor enters the field. As more manufacturers get out there competing for customers, prices keep falling, and patients often wind up paying 80% less than they used to.
Sources : Time.com
Generic drugs typically cost a fraction of their brand-name equivalents-easily 20%, and as much as 80% less, according to the Associated Press. Whether patients are insured or not, pay co-pays or not, have deductibles on their drug coverage or not, there are cost benefits to be had once generics begin competing with the brand names that once held monopolies.
For example, Protonix, which is prescribed to treat severe heartburn and just went off patent, costs $170 a month. But the generic version runs a mere $16 a month. The average co-pay for generic drugs, meanwhile, is $6, compared to $24 for brand names.
An FDA study on generic drugs and competition in the marketplace shows that, in terms of lowering prices, some competition is good, while lots of competition is great. Average prices (of generic and brand name drugs) drop a smidge when there’s one competitor in play with the brand name, and they decrease by nearly one-half when a second competitor enters the field. As more manufacturers get out there competing for customers, prices keep falling, and patients often wind up paying 80% less than they used to.
Sources : Time.com
