UpClose with Ken Dowell, Pharmacy Practice Leader, Evergreen Rx

What’s Your Generic Strategy?

Over the next two years, 16 blockbuster brand-name medications—representing more than 12% of drug spend—will be coming off patent. Generic substitutions have the potential of generating more than $2 billion in estimated savings.

According to recent published reports, consumers are increasingly confident about using generic drugs as a safe and effective alternative to brand-name drugs. Considering generics can cost up to 75 per cent less than their brand-name counterparts, having a strategy to transition members to generics as they become available can significantly lower drug spend.

In a recent study on the use of generics, 86% of consumers surveyed have used generics; 67% of those currently taking medication are taking a generic version and 66% perceive that generics “are exactly the same as brand name drugs in all respects”.

With so many drugs on schedule to go generic, there is a significant opportunity to further increase the use of generics. For example, health plans and employer groups should already be developing a money-saving plan for when the generic version of Zocor becomes available in just a few months. The generic Zocor will be competing with the number one selling drug in the country – Lipitor. Other popular drugs that will be going generic in 2006 are cholesterol-lowering Pravachol, antihistamine Allegra and Zoloft, which treats depression.

Helping clients prepare to take advantage of the new generics is just one of the many ways Evergreen Rx helps their clients lower their drug spend. For more information go to www.evergreenre.com or email kdowell@evergreenre.com