In partnership with the IQVIA Institute, the 2026 edition of AAM’s annual U.S. Generics & Biosimilar Medicines Savings Report revealed $496 billion in healthcare system savings in 2025. This is nearly a $30 billion increase in savings compared with 2024; and it brings the ten-year total savings for the industry to $3.6 trillion dollars. Clearly this data shines light on an immense value-add, but the generic and biosimilar medicines industry is more than the backbone of affordable healthcare in America. Generic & biosimilar medicines are a key and driving force of a stable healthcare system, a strong economy and national security in the U.S.
“Generic and biosimilar medicines are an indispensable, unique economic engine capable of driving affordable healthcare into the future. But the market that sustains our industry is at risk. We must adopt a generics and biosimilars first policy framework that moves generic and biosimilar medicines forward, by eliminating the structural obstacles that impede healthy competition. With this we can bring more affordable prescription options to the American patients who rely on them to feel well and live well!”
John Murphy III, President and CEO of AAM
Patients and the U.S. Healthcare System Saved $496 Billion in 2025
Up by nearly $30 billion from 2024, this figure indicates continued savings for the U.S. healthcare system—including patients, employers, and taxpayers—and immense value-add potential for American communities.
89% of U.S. Prescriptions Filled, 11.6% of Rx Drug Spending
Generic & biosimilar medicines are a driving force for healthcare stability, economic resilience and national security. In the U.S. in 2025, generics comprised 89% of all prescriptions filled, but only 11.6% of the total spent on prescription drugs. Conversely, brand drugs supported America’s patients less often, making up only 11% of prescriptions filled, while adding up to a staggering 88.4% of the total amount spent on prescription drugs. This means, in 2025, 4 billion generic prescriptions were filled, while only 485 million brand drug prescriptions were filled. And Americans spent only $106 billion on generic medicines, but a whopping $804 billion on brand-drugs.
$166 Billion Saved in Medicare, $3,011 Per Beneficiary
Generics and biosimilars continue to provide critical savings throughout the healthcare system and are particularly valuable to Medicare, employer-sponsored health insurance and the patients they serve. Despite these savings, many patients are forced to pay too much for their generic prescription.
