FRANKLIN LAKES, N.J., Jan. 18 /PRNewswire-FirstCall/ -- As the cold winter season continues to take its toll on the health and wallets of American consumers, a new analysis finds consumers warming up to the cost savings generated by generic prescription drugs with accelerated adoption rates.
According to an analysis of prescription claims released today by Medco Health Solutions, Inc. , total generic dispensing rates for Allegra(R), Arava(R), Amaryl(R), and Zithromax(R), topped 87 percent within 30 days after the brand-name counterparts became available. The average generic fill rate at retail pharmacies for the group was more than 86 percent; at Medco's mail-service pharmacies the rate averaged 95 percent. Each of these drugs lost their patent within the last four months of 2005.
Zithromax, the most recent and largest of the four drugs to move off patent, obtained an unprecedented generic dispensing rate at retail pharmacies of more than 90 percent as of the first week in January.
Medco estimates that the generic availability of the four drugs holds the potential to save its clients and their members $130 million annually.
"Medco regularly achieves a near-95 percent substitution rate within the first week for new generic chronic-care medications dispensed through our mail-order pharmacies, however the fact that an acute-care medication like Zithromax is now showing a 90 percent substitution rate at retail is extraordinary, and speaks volumes about the acceptance of physicians to prescribe, pharmacists to dispense and patients to use generic medications when clinically appropriate," said Dr. Glen Stettin, senior vice president, clinical products, Medco. "The really good news is that these four generic medications are just the start; with a number of popular medications expected to move off patent in the next several years, we should see substantial prescription drug cost savings. Physicians, pharmacists, patients and payors 'get it.'"
Within the next five years nearly 70 brand-name drugs, including 19 blockbusters such as Zocor(R), Zoloft(R), and Ambien(R), collectively accounting for more than $45 billion in U.S. sales, are anticipated to become available as generics.
Zithromax is a commonly prescribed antibiotic with annual sales exceeding $1.7 billion domestically. The medication is primarily used to treat respiratory infections including bacterial bronchitis and sinusitis; community-acquired pneumonia; and ear infections and tonsillitis in children. As acute-care medications, antibiotics, including Zithromax, are dispensed predominantly through retail pharmacies. The patent on Zithromax expired on Nov. 1, 2005 and three generic versions of the drug received approval from the Food and Drug Administration (FDA) on November 14.
Allegra is a leading allergy medication, which posted $1.3 billion in U.S. sales in 2004. The FDA approved the generic version of the drug on Sept. 6, 2005.
The diabetes treatment Amaryl reached U.S. sales of $277 million in 2004, with the generic version receiving FDA approval on October 7, 2005. Arava, a treatment for rheumatoid arthritis exceeded $175 million in 2004 U.S. sales before it was approved by the FDA as a generic on Sept. 15, 2005.
Medco Makes the Case for Generics
Medco has consistently provided physicians, payors and patients with educational materials, programs and services that have laid the groundwork for stimulating an increasing acceptance and use of generic drugs.
The company collaborates with clients months in advance for a rapid adoption of a prescription generic medication. Prior to market availability, the company actively informs physicians, particularly those who are the most- frequent brand-name prescribers of a particular drug, about the availability of the clinically proven generic.
Medco encourages its millions of members to use generics by mailing and posting notices on medco.com when a new generic becomes available, and by educating its members about the significant cost savings associated with generic medication use. Within the new Medicare Part D prescription drug benefit, Medco provides its YOURx PLAN(TM) members with generics at a very low cost of $4 per 90-day prescription at mail, without any deductible.
About Medco
Medco Health Solutions, Inc. is a leader in managing prescription drug benefit programs that are designed to drive down the cost of pharmacy healthcare for private and public employers, health plans, labor unions and government agencies of all sizes. With its technologically advanced mail-order pharmacies and its award-winning Internet pharmacy, Medco has been recognized for setting new industry benchmarks for pharmacy dispensing quality. Medco serves the needs of patients with complex conditions requiring sophisticated treatment through its specialty pharmacy operation, which became the nation's largest with the 2005 acquisition of Accredo Health. Medco, the highest-ranked prescription drug benefit manager on Fortune magazine's list of "America's Most Admired Companies," is a Fortune 50 company with 2004 revenues of $35 billion. On the Net: http://www.medco.com.
This press release contains "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties that may cause results to differ materially from those set forth in the statements. No forward-looking statement can be guaranteed, and actual results may differ materially from those projected. We undertake no obligation to publicly update any forward- looking statement, whether as a result of new information, future events, or otherwise. Forward-looking statements in this presentation should be evaluated together with the risks and uncertainties that affect our business, particularly those discussed in the Risk Factors section of the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission.
Medco Health Solutions, Inc.CONTACT: Ann Smith of Medco Health Solutions, +1-201-269-5984, orann_smith@medco.com; or Janet Schiller or Nicole Severino of Coyne PublicRelations, +1-973-316-1665, for Medco
Web site: http://www.medco.com//
