There is tremendous potential for greater use of generics and significant savings, especially in the next several years, because the patents of many top-selling brand name drugs are expiring. On average, a generic drug costs about $45 less than a brand name drug and it is estimated that for each 1% increase in generic fill rate, pharmacy spend decreases by 1%. NLARx is working with state legislators to promote the use of clinically equivalent generic drugs through a variety of strategies, including requiring the generic to be dispensed when available, through preferred drug lists, lower copays, and counter detailing. NLARx is also working with state legislators interested in a state role regulating the use of patents. Courts have held that patents are a form of property subject to state regulation and control through contract law and even the power of eminent domain.

GPhA Documents on Generic Policies and Savings

• 70% Generic Drug Utilization Rate Saves Four States Millions
• Generic Medicines Are the Same As Their Brand Counterparts
• The Risks of Transplant Drug Carve-Out Laws

Researching this Issue

Model laws and best practices, testimony supporting these initiatives, and background information and research materials including reports, legal briefs and decisions, and news articles are posted here. Other relevant materials related to generics policy may be found on the issue pages relating to Preferred Drug Lists and Medicaid pages. The Pricing issue page includes information and legal materials on state drug pricing laws that have raised issues of intellectual property and patent law. The Trade issue page also includes information on patent law cases and policy in an international context. See also the Related Links below to connect to other organizations and materials relevant to this issue.