PHARMACEUTICAL STICKER SHOCK ; Prices of generic drugs soar as mergers reduce competition
By Dan Dundon | |
Proquest LLC |
In the 34 years
Roberts, president of
He isn't alone in his suspicions.
Many other observers of the pharmaceutical industry see consolidation as a troubling indicator of continued price increases, which will have a dramatic impact on consumers.
Hardly a week goes by without news of another acquisition in the pharmaceutical industry. The airline and the cable industries are prime examples of how those consolidations lead to higher prices. But while consumers can choose to travel by car or cut their cable cord, they are frequently compelled to pay higher generic drug prices to treat their ailments.
Much, much lower prices - until now. That's troubling for Roberts and other pharmacists because more than 85 percent of all prescriptions are for generics.
The rise in generic drug prices first became evident in 2013 and the increases are continuing this year, Roberts said.
"Generic drug inventories that have been plentiful for years suddenly won't be available for a time," he said. "When they come back on the market, the price is exorbitant compared to what it used to be."
One example is the eye drop
Roberts said he had been able to acquire the generic drops for
"Our biggest problem is patients who simply walk away when they learn of the price increase," he said. "Even if they have insurance, the new plans have high deductibles. Years ago, if you had a deductible, it was usually on major medical expenses. Now they are all lumped together."
But in a transcript of
"Pricing of key products is reviewed regularly, taking into account all relevant factors including regulatory and production costs," she said.
The eye drops aren't an unusual example of what is happening with many generic drugs. According to the
More than 84 percent of pharmacists said price fluctuations resulted in some patients refusing their prescriptions because of costs. For independent pharmacists already squeezed by large chain pricing, this trend has raised concerns about some of them remaining in business.
"There is no question that with generic drugs with multiple manufacturing sources, there are much lower price increases because competition is a factor. Generally, we find the more competitors in the market, the lower the price. Today, we are seeing fewer manufacturers and consequently the competition decreases," said
Another university pharmaceutical expert,
"If you have one company with multiple products in one therapeutic area such as hypertension you will see improved capability to get and maintain premium prices," Kemp said.
The
The FTC also has also filed actions forcing pharmaceutical companies to divest interest in certain generics before a merger. In Fiscal 2012, for example, the agency challenged proposed mergers by Valeant,
Despite these actions, merger activity in the pharmaceutical industry continues. And at the current pace, Roberts fears his pharmacy and his customers will likely see price increases for generic drugs well into the future.SHOP AROUND Before you fill that prescription, shop around for the best price. You can compare prices at pharmacychecker.com.
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