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[Price differences between generic and innovator medicines in Brazil]
Fabiola Sulpino Vieira1, Paola Zucchi
1Centro Paulista de Economia da Saúde, Universidade Federal de São Paulo, São Paulo, SP, Brasil. fabiolasulpino@uol.com.br
Revista De Saude Publica
|July 1, 2006
Summary
Generic medicines entered the market at prices 40% lower than innovator drugs, with this gap widening over time. While generics offered savings, innovator drug prices largely remained unchanged despite competition.
Area of Science:
- Pharmaceutical Economics
- Drug Pricing Analysis
Background:
- Generic medicines offer potential cost savings in healthcare.
- Understanding price dynamics between generic and innovator drugs is crucial for market analysis.
Purpose of the Study:
- To quantify the price disparity between generic and innovator pharmaceuticals.
- To evaluate the impact of generic competition on innovator drug pricing.
Main Methods:
- Analysis of 135 generic and innovator drug pairs from January 2000 to June 2004.
- Tracking drug prices for up to four years post-generic launch.
- Data sourced from pharmaceutical market publications.
Main Results:
- Generic drugs launched at an average of 40% below innovator prices.
- The price difference increased significantly in the four years following generic introduction.
- Innovator drug prices showed limited markdown despite generic competition.
Conclusions:
- Generic medicine introduction in Brazil led to more affordable drug options.
- Competition from generics did not substantially reduce the prices of most innovator medicines.
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