Header graphic for print
Dangerous Drugs & Medical Devices News & Commentary on Prescription Drug & Medical Device Lawsuits

Largest Monthly Drop in Prescription Drug Cost Seen in Decades

Posted in Public Health

Recent reports from MarketWatch and Bloomberg Businessweek cite that the US drug prices fell by about 1% last month, representing the largest such dip in prices in decades.

Interestingly, MarketWatch reported that the cost of drugs fell by 0.9%, and that this was the biggest monthly drop since 1969, and Bloomberg reported the cost fell by 0.8%, the largest decrease since 1967.  Whatever the case may be, these are historic figures and allow a bit of fresh air for consumers in the US prescription drug market, what is widely-known for its high prices.

According to MarketWatch, “A so-called ‘patent cliff’ in which a number of exclusive rights expired on a number of top-selling drugs over the last year or two is the likely culprit for the prescription drug price drop.”  These drugs included “Pfizer Inc.’s (PFE -0.05%) cholesterol-fighting superstar Lipitor, as well as the coronary treatment Plavix, sold by Bristol-Myers Squibb (BMY -0.35%) and Sanofi (SNY -0.21%).”

And, while these next two categories did not set records, the price over-the-counter drugs fell by an average of 0.9%, and the cost of medical devices fell by 0.5% last month, amounting to a 1.6% drop in cost since the same time last year for the latter category. (MarketWatch)