FDA analysis: Drug prices plunge with generics competition

04/4/2006 | NYTimes.com

Competition from generics substantially reduces the prices of prescription drugs, according to an analysis by the FDA. A single challenger to a branded drug typically sells for 94% of its rival's price, but when two generics are on the market the average price drops to 52% of the name-brand's version. Prices continue to decline with even more competition, although at a slower pace, the analysis found.

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