Generic Drug Sales to Soar Previous Estimates

20 September, 2005

Sales of generic drugs in the United States the year 2005 is expected to top $28 billion, nearly 65 percent more than previous estimates, according to new projections released yesterday by IMS Health, a leading drug industry research company.
Generic drugmakers are poised for a potential windfall as 43 million needy and elderly people become eligible beginning next year for a new Medicare drug plan that will encourage generic drug use.

The higher sales projections, released at the Generic Pharmaceutical Association's policy conference here, and the government prescription benefit plan could offer much-needed relief to an industry that is under assault on several fronts, industry officials said yesterday.

The new generic sales figures released by IMS yesterday takes into account previously uncounted "branded generic" products, such as Salamol, a generic salbutamol inhaler for asthma sufferers that Ivax markets under its own brand name. The inclusion of "branded generics" largely explains the significant boost in the sales forecast.

Last year, generic drugs filled about half of the nation's 3.6 billion prescriptions, according to IMS. Six generic drugs ranked among the top 10 prescription medicines. By offering prescription drugs at a fraction of the cost of brand-name medicines, the generic industry has done a commendable business.

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