FDA In Brief: New analysis highlights link between generic drug competition and lower drug prices, underscores importance of FDA efforts to spur generic drug development and market entry

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FDA issues new analysis linking greater generic competition and lower generic drug prices

Today, the U.S. Food and Drug Administration posted a new analysis showing greater competition among generic drug makers is associated with lower generic drug prices.  This analysis updates and expands on a previous analysis from 2005 and includes two different sources of wholesale drug prices – average manufacturer prices (AMP) reported to the Centers for Medicare and Medicaid Services and invoice-based wholesale prices reflecting pharmacy acquisitions from IQVIA’s National Sales Perspective database. The analysis looked at all drug products that had initial generic entry between 2015 and 2017 and showed that as competition increases, generic drug prices decline.

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