September 12, 2025
TOPLINE
In case you missed it, a new report from the Association for Accessible Medicines (AAM) and Biosimilars Council found generic and biosimilar medications saved American patients and the U.S. health care system $467 billion in 2024 by reducing reliance on higher priced brand name drugs. Savings over the last decade amounted to a staggering $3.4 trillion.
Although brand name drugs make up just one in ten U.S. prescriptions filled, they represent a staggering 88 percent of prescription drug expenditures. In contrast, generic medicines account for nine in ten of all prescriptions filled in the U.S. yet comprise only 12 percent of total prescription drug spending. This stark imbalance underscores how pharmaceutical companies engage in anticompetitive tactics to keep brand name drug prices high and maintain market dominance.
A recent study published in JAMA Health Forum recently found lost competition due to Big Pharma’s patent thickets on just four widely prescribed brand name drugs cost patients, taxpayers and the U.S. health care system more than $3.5 billion over two years due to lost competition. Read more on HERE.
QUOTES OF THE WEEK
“By a very large margin, Granite State voters view pharmaceutical companies to be most responsible for increases in the costs of prescription drugs.”
Jonathan Klinger, Head of Polling, Praecones Analytica
DATA POINTS YOU SHOULD KNOW
$142 Billion
Last year, competition from generic medications produced $142 billion in savings for Medicare, according to the report from AAM and the IQVIA Institute.
TWEETS OF THE WEEK
@realtahiramin: “A new study in @JAMA_current by Dongzhe Hong, @SeanTu2, and Reed F. Beall looks at the cost of extended market exclusivities due to patent term extensions and patent gaming. https://jamanetwork.com/journals/jama-health-forum/fullarticle/2837799”
@AccessibleMeds: “Last year, generic medicines comprised 90 percent of all prescriptions filled, but only 12 percent of prescription spending. In sharp contrast, brand drugs supported patients less often— making up only 10 percent of prescriptions filled but adding up to 88 percent of the total drug spend. This means that in just one year, Americans spent $98 billion on prescription generic medicines and a whopping $700 billion on brand drugs. Learn more about how generic medicines drive healthcare savings and help patients thrive. Visit: https://accessiblemeds.org/resources/blog/2025-savings-report/”
ROAD TO RECOVERY
Forbes: How Can Biosimilars Capture Market Share From Biologic Drugs?
Biologic drugs, made from living organisms and usually taken by injection or infusion, are expensive treatments for complex chronic conditions such as cancer and autoimmune diseases. Biosimilars, clinically comparable to biologics and priced lower, create cost-saving opportunities for patients and plan sponsors. Many hoped that biosimilars would quickly gain ground once they entered the market. However, the reality has been disappointing.
PHARMA’S POOR PROGNOSIS
NH Journal: Poll Shows Granite Staters Blame Big Pharma For High Drug Costs
In the debate over how to address high drug costs for U.S. consumers, President Donald Trump pointed the finger at Big Pharma, blaming it for the price Americans pay for medications. In a letter to drug manufacturers earlier this summer, Trump demanded that they take a series of steps to lower the cost of drugs. “If you refuse to step up, we will deploy every tool in our arsenal to protect American families from continued abusive drug pricing practices,” he wrote. “Americans are demanding lower drug prices, and they need them today.” And an NHJournal/Praecones Analytica poll of Granite State voters shows they agree.
Reuters: Eli Lilly Loses Appeal Of $183.7 Million Medicaid Fraud Award
A federal appeals court on Thursday rejected Eli Lilly's (LLY.N), opens new tab appeal of an $183.7 million judgment won by a whistleblowing lawyer and pharmacist who accused the drugmaker of defrauding Medicaid. The 7th U.S. Circuit Court of Appeals in Chicago said a federal jury reasonably found that Lilly knowingly concealed having retroactively increased prices on some drugs, and then failing to rebate Medicaid on the higher prices.
Alabama Political Reporter: Americans Pay Triple For Prescriptions While Big Pharma Reaps Profits
As Congress reconvenes, the fight over prescription drug costs is once again front and center. The Pharmaceutical Reform Alliance, a consumer advocacy group dedicated to lowering medication costs, is sounding the alarm that Americans are consistently paying the highest prices in the world for the same treatments available elsewhere at a fraction of the cost. The group argues that without serious reforms, families will continue to bear impossible financial burdens just to access lifesaving care. The disparities are staggering.
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