Analyst discusses expanding generic drug industry at NACDS Pharmacy

BOSTON Even as such industries as housing and finance have been coasting down the hill of recession, the prescription drug industry has continued to grow, especially in the area of generics, an analyst told drug and retail pharmacy industry representatives Tuesday.

Speaking at the National Association of Chain Drug Stores’ 2009 Pharmacy and Technology conference, IMS Health VP industry relations Doug Long showed that generic drugs had continued to see strong prescription and sales growth.

“I would say that the pharmaceutical business has been affected less and the OTC business has been affected less than some other businesses,” Long said.

According to IMS research, total prescription drug market sales growth for the 12 months ended in June was 3.2%. Of that, generics accounted for 10.2% of growth, compared with 0.8% for branded drugs, 5.1% for biotech drugs and 5.3% for drugs prescribed by specialists. In the first six months of 2009, generic drug prescriptions grew by 5.6% and accounted for 11.9% of sales growth, while branded drug prescriptions declined by 9.2% and accounted for 2.7% of sales growth.

Thanks to that growth, more than 70% of prescriptions dispensed are now generic, but they account for 17% of sales, despite generics sales having tripled since 2000 to exceed $51 billion. Long said he expected generics’ share of total prescriptions to reach 80% once Pfizer’s Lipitor (atorvastatin) begins losing patent protection next year.