Abstract
The dollar value of prescription drug sales increased by 6.3% last year in Canada, the lowest increase in a decade, according to IMS Health. That compares to an average growth rate of 8.4% every year between 2002 and 2006.
The market intelligence firm also reported that generic drug sales grew significantly more than sales in the brand name sector. The value of generic prescription medication sales rose 20.9% in 2007, compared to just 1.4% for sales of brand name drugs (excluding biotechnology products).
A key reason for the 2007 growth slowdown was a significant increase in use of generic medications as patents expired for several brand name products, including Altace and Effexor XR. Sales growth was also affected by a number of product withdrawals and Health Canada drug safety bulletins, as well as a modest uptake of new products and long delays in acquiring formulary market access, said IMS Health in a March 26, 2008, news release.
In terms of numbers of prescriptions: prescriptions dispensed with a generic drug increased by 14%, while the numbers for brand name medications actually declined by 0.2%.
Outlook for the future
IMS Health forecasts that overall pharmaceutical sales growth will remain at comparable levels to 2007 for the next few years. It is predicting an annual 5% to 7% expansion from 2008 to 2012.
The firm does say, however, that the disparity between brand name and generic drug sales will not be as wide in the next 2 years, as fewer patent expiries are on the horizon.
More information can be obtained at www.imshealthcanada.com