Take a look at the list of commonly prescribed generic medicines below and note the wide gulf between what generic drug makers charge for their medicines (to others in the supply chain) and what patients might pay if they chose to use just cash when filling their prescription at the pharmacy. Unlike brand drugs where the manufacturer stands to profit the most, generic medicines provide an opportunity for middlemen to seize significant profits at the expense of patients and the companies that make the medicines.
For example:
- Atorvastatin, the generic medicine commonly prescribed to control high cholesterol, sells to patients at retail for $46 cash. Generic drug makers sell it to their customers in the supply chain for only $1.46.
- Omeprazole, the prescription generic medicine commonly prescribed to treat heartburn and stomach ulcers, sells to patients at retail for $74 cash. Generic drug makers sell it to their customers in the supply chain for only $.92.
Source: IQVIA, US Market Access Strategy Consulting Analysis, January 18, 2022. Dollar amount is reflective of a 30-day supply.
Generic drug makers are not to blame for high out of pocket costs.
Policymakers can address these challenges and ensure the sustainability of the generic and the emerging biosimilar medicines markets. The AAM Roadmap For Ensuring Patient Access has key steps policymakers can take to ensure all Americans continue to benefit from a competitive and robust generics and biosimilars industry.
View Roadmap
