ASHEVILLE, NC – Doctors’ lack of brand loyalty costs Big Pharma billions of dollars annually because doctors prescribe generics as soon as they become available, says a new survey from marketing solutions firm DoctorDirectory.
DoctorDirectory sent its "Generic Equivalents Survey" to members in its healthcare professionals community to uncover prescribing habits when brands lose patent exclusivity.
“Brand loyalty is nearly non-existent when it comes to physician prescribing behaviors in spite of reports of diminished performance from generic equivalents,” the company said in a press release announcing the study results. “Ninety-five percent of prescribers surveyed report they are somewhat likely to switch to generics immediately after they become available, costing Pharma brands billions of dollars annually.”
Use of generic prescription drugs in the United States has saved consumers and the healthcare system $931 billion over the last 10 years, according to a report released by the Generic Pharmaceutical Association (GPhA) last September.
In its report “Savings: An Economic Analysis of Generic Drug Usage in the U.S.,” the GPhA claims that in 2010 generic drug use generated nearly $158 billion in savings, an average of $3 billion every week.
“These findings could not have come at a more critical time,” said Ralph G. Neas, GPhA president and CEO in a statement accompanying the report. “The analysis shows beyond doubt that savings achieved through the use of safe and effective generics deliver a huge win to consumers looking to hold down their healthcare costs.”
According to IMS Health, a market research firm that monitors the healthcare industry, nationwide spending on medicines exceeded $307 billion in 2010, and more than $100 billion in annual brand-name drug sales are at risk when generic competition hits the market between 2011 and 2015.
In a recent report, IMS Health stated that, “Over 80 percent of a brand’s prescription volume is replaced by generics within six months of patent loss.”
“American consumers are extremely aware of generic options and are actively looking for them,” said Michael Kleinrock, research director at the IMS Institute for Healthcare Informatics, a subsidiary of IMS Health. “Seventy-eight percent of all prescriptions in the U.S. are for generics.”
There are 10 blockbuster drugs scheduled to lose their patent protection by the end of 2012, including Viagra, Singulair and Plavix. Industry analysts project that Big Pharma companies will likely introduce new formulations of brand name drugs or seek FDA approval for new indications to offset the loss of dollars and total prescriptions written.
Follow HFN Editor Rene Letourneau on Twitter @ReneLetourneau
