Burchfield Group’s pharmacy benefit consultants weigh in on the side of generic drugs

Everyone knows that generic drugs are a good thing for prescription drug plan sponsors and for consumers, but generics still face several “barriers to acceptance” that prevent them from being used more often, according to Brian Bullock, president of The Burchfield Group.

In today’s installment of the Pharmacy Benefits Podcast, Bullock and colleague Deanna Mendelow discuss these barriers to acceptance and changes on the horizon for the “generics versus branded” drug debate. The Pharmacy Benefits Podcast is hosted by The Burchfield Group, a pharmacy benefit consulting firm that helps businesses control the cost of providing prescription drug benefits for their employees.

“Use of generic drugs has increased substantially during the past few years,” Bullock said. “Plan sponsors are having success, and are weathering some consumer push-back, with a generics-first strategy. Benefits executives should consider how to insert step-therapy programs to encourage or enforce the use of the lesser expensive products – available either over the counter or generically – rather than just the latest and greatest.”

Although branded drugs are used more often than their generic equivalents, generics are taking a growing cut out of the branded drugs’ market share. On Thursday the Wall Street Journal reported that vigilant efforts by employers and insurers to encourage the use of less expensive generics are taking a toll on Pfizer, the world’s largest drug company.

Pfizer has seen dramatic decreases in market share for many of its drugs. The most significant decline, the article said, is that of Lipitor, Pfizer’s market dominating cholesterol medication, which is steadily losing ground despite the five years of patent protection it has remaining. Even in the face of this positive trend, transitions from expensive brands could move faster, according to The Burchfield Group’s Mendelow.

“After a branded drug has been off patent for six months or so, we start to see a significant drop in price,” said Mendelow, vice president at The Burchfield Group. “But generics still aren’t used as often as they should because consumers think that, to some extent, generics are second-rate.”

Bullock invites listeners to submit questions and comments, which they will address in subsequent podcasts. Send an e-mail to bbullock@burchfieldgroup.com or call 651-389-5640.