• Drug Coverage
  • Hypertrophic Cardiomyopathy (HCM)
  • Vaccines: 2023 Year in Review
  • Eyecare
  • Urothelial Carcinoma
  • Women's Health
  • Hemophilia
  • Heart Failure
  • Vaccines
  • Neonatal Care
  • Type II Inflammation
  • Substance Use Disorder
  • Gene Therapy
  • Lung Cancer
  • Spinal Muscular Atrophy
  • HIV
  • Post-Acute Care
  • Liver Disease
  • Pulmonary Arterial Hypertension
  • Safety & Recalls
  • Biologics
  • Asthma
  • Atrial Fibrillation
  • Type I Diabetes
  • RSV
  • COVID-19
  • Cardiovascular Diseases
  • Breast Cancer
  • Prescription Digital Therapeutics
  • Reproductive Health
  • The Improving Patient Access Podcast
  • Blood Cancer
  • Ulcerative Colitis
  • Respiratory Conditions
  • Multiple Sclerosis
  • Digital Health
  • Population Health
  • Sleep Disorders
  • Biosimilars
  • Plaque Psoriasis
  • Leukemia and Lymphoma
  • Oncology
  • Pediatrics
  • Urology
  • Obstetrics-Gynecology & Women's Health
  • Opioids
  • Solid Tumors
  • Autoimmune Diseases
  • Dermatology
  • Diabetes
  • Mental Health

Generic drug prices rise, but may slow


While generic drug prices continue to rise, analysts say they may not continue their rapid growth rate.

While generic drug prices continue to rise, analysts say they may not continue their rapid growth rate.

Generic drug prices paid by retailers rose 4.7% in the fourth quarter, which was nearly in line with the 5.1% average price increase over the past 2 years, according to Sector & Sovereign Research, The Wall Street Journalreported.

In addition, Pembroke Consulting’s estimate found that the media increase in price during the first quarter of this year was 5.3%, according to the WSJ article. “This shows that generic drug prices have gone up and stayed high, but that the rate of increase is slowing,” Pembroke Consulting President Adam Fein told the WSJ.

The price hike may be slowing because payers and Congress are putting more of a spotlight on rising drug costs. In addition, the Office of the Inspector General of the U.S. Department of Health & Human Services plans to review price increases on the Medicaid drug rebate program, according to Fein.

Related:2014 drug costs soar, no end in sight

Plus, as FDA succeeds in working down the number of outstanding new drug applications, generic prices should decline, Fein said.

Related: Americans want drug pricing reform

Still, prices are up currently because generic drug makers that have charged little in the past increased prices toward the median for all drugs and generic drug makers that were already charging median prices, but not selling much product, also increased prices, Richard Evans with Sector & Sovereign Research, told WSJ.

“If inflation is explained largely by strapped generic manufacturers cooperating [on pricing], then it can’t last very long,” Evans wrote in a report. As manufacturers’ financial results improve, “the number of manufacturers required to cooperate is far too large for the cooperative spirit to remain stable.”

Read next: Louisiana bill seeks closed formulary

Related Videos
Related Content
© 2024 MJH Life Sciences

All rights reserved.