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Cost and Price of Comparable Branded and Generic Pharmaceuticals-Reply FREE

Louis Lasagna, MD
JAMA. 1987;257(18):2438-2438. doi:10.1001/jama.1987.03390180056019
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ABSTRACT

In reply.—  It is unfortunate that telling the truth about drug prices should be called an "attack" on pharmacists and generic prescribing. The data from several studies in this area are in total agreement: (1) Generic drugs are, on the average, cheaper than brand name drugs. (2) The cost of a prescription varies significantly from pharmacy to pharmacy, regardless of how it is written (ie, for a generic or branded drug). (3) In a given pharmacy, the difference in price between a branded drug and a generic version can be substantial or trivial. (4) Sometimes, in the same pharmacy, a branded drug will cost less than a generic. (5) Savings from generic prescribing are not invariably passed on to consumers. (6) If a pharmacy charges about the same for a generic version as for the innovator product, the profit percentage per transaction is greater with the generic drug, because the acquisition costs

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