While there is much discussion about controlling prescription drug prices, the undeniable trend in the generic drug industry is that prices have been trending down for the past several years.
Generic Prices are Down, But Is that a Good Thing?
The short term effects appear good for the consumer, but the longer term effects could result in higher prices and drug shortages. Today, 90% of U.S. prescriptions are for generic drugs not branded drugs, but in 2017, generics made up only 13% of all prescription spending. Over the past several years, branded drug prices have been going up while generic drug prices have been going down. Prices are so low that some generics are deciding to exit, stop producing and marketing certain drugs that are no longer profitable. If they exit, where will consumers get basic antibiotics and drugs that are no longer sold by the branded firms?