Increased Topical Generic Prices by Manufacturers: An Isolated Trend or Worrisome Future?

Publication date: Available online 12 March 2018
Source:Journal of the American Academy of Dermatology
Author(s): Mehul D. Bhatt, Birju D. Bhatt, James T. Dorrian, Beth N. McLellan
BackgroundThere is limited data regarding generic medication prices. Recent studies have shown price changes at the retail level, but much is not known about the pharmaceutical supply chain or price changes at the manufacturer level.ObjectiveWe sought to examine the extent of price changes for topical generic medications.MethodsA comprehensive review of average wholesale prices (AWP) and manufacturers of topical generics and available corresponding branded medications was conducted for 2005 and 2016.ResultsA total of 51 topical chemical entities were examined. Between 2005 and 2016, the AWP of topical generics increased by 273% and the AWP of topical branded increased by 379%. The topical generic with the most price change increased by 2529%. Eight of the top twenty topical generics with the highest increase in AWP also had an increase in the number of manufacturers.LimitationsThese findings are not generalizable to medications used in other areas of medicineConclusionsTopical generic prices are rapidly increasing at the manufacturer level.