FDA estimates that in 2017, approved generic drugs saved 8.8 billion dollars

As of January and February 2017, cost savings attributable to approved generic drugs in 2017 amounted to $8.8 billion As of February 2018, cost savings attributable to approved generic drugs in 2017 amounted to $11.8 billion This is the first time that FDA has released the cost saving estimation report of approved generic drugs FDA estimates are based on pharmacy procurement costs and do not reflect rebates, discounts, and off invoice price concessions In April this year, iqvia announced that after deducting discounts and rebates, the cost of drugs in the United States in 2017 was $324.4 billion In 2017, the FDA Office of generic drugs approved a record 1027 simplified new drug applications, of which 834 were fully approved FDA uses iqvia's monthly sales and quantity data to estimate the benchmark price and market of fully approved generic drugs in 2017, and obtains the aforementioned data of 8.8 billion US dollars and 11.8 billion US dollars The total cost savings are calculated by subtracting the average approved price of Anda from the base price of each drug product and multiplying it by the sales volume for the rest of the year The FDA's estimate also takes into account the fact that multiple generic applications for the same original drug have been approved in the same year, and determines the cost savings attributable to other entrants through the average market price of related drugs between initial approval and subsequent approval Based on these data, the extrapolation method is used to estimate that the total cost savings attributable to the approved generic drugs in 2017 will reach US $16 billion in the period of one year after approval Please refer to the report for detailed estimation method FDA released the 2017 approved generic cost saving estimation report, which estimates the cost savings generated in the year after the approval of generic drugs, rather than the cost savings attributable to all generic drugs during the 10-year period described in the previous report In the FDA's 2016 annual report of the generic pharmaceutical office, the generic pharmaceutical Alliance (renamed Association for accessible medicine) was quoted as saying: "in the past decade, the use of generic drugs has saved about $1.5 trillion for the U.S healthcare system and saved patients' costs."