An interesting study of Miquel Serra-Burriel et al. (2024) It examines the impact of genericisation on drug prices in eight high-income countries (Australia, Canada, France, Germany, Japan, Switzerland, the UK and the US). The authors used IQVIA MIDAS data from 2011 to 2020 on 505 new originator medicines. They found that:
Price declines were statistically significant over the 8 years after patent expiration, with the most rapid price declines seen in the US: 32% (95% CI, 24%-39%) in the first year after patent expiration and 82% (95% CI, 71%-89%) in the 8 years after patent expiration. Estimates for other countries ranged from a 64% decline in Australia to 18% in Switzerland in the 8 years after expiration. Cost-effectiveness simulation modeling indicated that failing to account for generic market entry may result in biased incremental cost-effectiveness ratios of 40% to -40%, depending on the scenario.
You can read the full article here.
