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Cheap generics could shift drug purchase patterns

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Harris Interactive

The fallout from Wal-Mart's $4 generics campaign could be much more dramatic than we thought. A new study from the Wall Street Journal Online and survey firm Harris Interactive predicts that not only will Wal-Mart-style cheap generics attract customers to stores, they could potentially shift long-term U.S. prescribing and purchasing patterns. Dirt-cheap generics seem very likely to change consumers' drug purchase habits, according to the survey. Of the 2,493 adults surveyed, only 13 percent currently get their prescriptions from discount stores like Wal-Mart and Target, but that's likely to change as low-cost generics programs expand, researchers said. Half of those adults said they're likely, very likely or absolutely certain to fill those prescriptions at cut rates when they have the chance, and another 25 percent are somewhat likely to do so, the survey found. In other words, only one-quarter of consumers surveyed feel strong ties to retail drug stores like Walgreens or CVS.

To get more background on the study:
- see the Wall Street Journal Online/Harris Interactive release

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An Inexpensive Health Asset

More now than in the past, generic medications have been encouraged by prescribers at a much higher rate due to the problem of the high cost of branded meds that many find unfair and unreasonable. Branded meds are still prescribed often, though, mainly due to samples of such meds provided at a doctor’s office from the sales reps who promote these meds. Generics typically are not sampled due to lack of funds compared with branded pharmaceutical companies. Yet generics cost a small fraction, such as a third of the cost, of the same branded meds that are supposed to have the same molecular bioequivalence. In other words, they are supposed to work the same as the branded equivalents in relation to safety and efficacy. Yet not all branded meds have a generic formulation due to patent exclusivity and therefore cannot be produced until the expiration of this patent of the branded med.

Not long ago, generic meds were not prescribed that often, or produced to a great degree because of the cost of bringing such a med to the market, which at the time required the same protocols as branded meds. Fast forward to 1984, when the Hatch-Waxman Act was introduced, and this Act only required generic meds to demonstrate bioequivalence to the branded med that they desire to reverse engineer, and nothing else included in the approval process. The reduced cost of generic production allowed for more of these meds to saturate the market, and doctors started prescribing more generic meds as a result. Branded pharmaceutical companies were not pleased in large part with this new act, so they devised schemes to extent the patents of their branded meds, through such tactics as reformulation, which is called Evergreening, of their meds and frivolous patent infringement lawsuits, which delay generic availability for a longer period. Yet pharmacies support generic use, as they make more money off of generics compared with branded meds. So delays will not prevent the utilization of generics, overall, and thier use has increased even more over the past few years. Generics seem to remain such a concerning threat of branded pharmaceutical companies in spite of their efforts of avoiding their access, that branded companies have progressively started producing their own generic meds along with their branded ones due to the increased use of generics. Novartis Pharmaceuticals is an example of this strategy of possessing and promoting both branded and generic medications.

Also, other reasons for increased generic prescribing is due to the awareness and clinical experience of the previous branded med that has been replicated by the generic med. Newer drugs at times are not a desirable choice of treatment for patients because of lack of confidence of the prescriber- safety being the main concern with some prescribers. So the familiarity of a generic equivalent of a known med creates a more reassuring choice for the prescriber. Available generics are listed in what is called an orange book. It should be available to all health care providers for their access. Managed Care Companies share the same paradigm regarding generic meds that some are actually paying prescribers to switch and prescribe generic meds for thier patients, possibly without the knowledge of the patient of this occuring. And this may be happening due to the branded pharmaceutical companies inducing prescribers all the time, so perhaps this is a response by the managed care companies.

Most encouraging for even greater use of generic meds is that at least one company has created vending devices for doctor’s offices for dispensing both generic and over the counter meds. This may discourage the use of branded equivalent meds at a greater amount with generic samples available as well as the branded meds that are present in a doctor's office. In addition, and in some cases, doctors can order generic samples from the manufacturers. Knowledge is a good thing when it comes to prescribing choices.

Yet some doctors insist that you get what you pay for, so they are convinced that branded meds are always more efficacious and tolerable than generic meds. This misconception is a fallacy, since both forms are identical from a bioequivalence and bioavailability paradigm, as required for approval. I’m sure it’s possible others have encouraged such doctors to take such a stance void of fact and reason. Yet there may be some truth to this, as some claim that generics are in fact less efficacious than the branded meds. Only testing the branded versus the generic meds would validate the claims.

Considering the health care crisis in our country and the over-priced treatment methods in our system, as with branded pharmaceuticals, generic medications should be considered when clinically appropriate for the benefit of those seeking restoration of their health. It would beneficial for patients to become aware of this pharmaceutical system and request generics when being prescribed a med by their health care provider. In other words, they should question authority figures such as doctors are perceived to be, as patients definitely have a right to acquire knowledge and use this for their benefit with situations as their choices for treatment options, as this will be for their financial benefits while improving their well-being with generic medications- an ideal way to reduce health care costs and improve compliance with their meds because generics are an affordable asset to public health.

"Most people would die sooner than think. In fact, they do so." --- Bertrand Russell

Dan Abshear

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