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Generics Bulletin Explains: The Changing US Generics Market

Price Pressures Are Abating Amid Portfolio Pruning, Market Exits And Shortages

 
• By Dave Wallace

After a couple of years of heavy downwards pressure on US generics prices, prominent off-patent companies have pointed to a change in the pricing environment as several factors combine to reduce price erosion. Meanwhile, some firms are benefiting from first generic launches as others exit the market altogether, while injectables shortages continue to loom large.

Dollar coin squeezed in G-clamp on top of USA flag
Pricing pressures on generic drugs are easing in the US • Source: Shutterstock

Robert Califf, commissioner of the US Food and Drug Administration, recently summarized in straightforward terms the disconnect between the public perception of high drug prices and the realities for the off-patent industry by stating that innovator prices “are too high,” while for the generics industry “a lot of the prices are too low.”

“What I mean by that,” Califf explained, in widely reported comments made at an Alliance for a Stronger FDA event, “is that the price has been driven down below the...

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