According to the Association for Accessible Medicine (AAM) report (here), generic drugs represent 90% of all prescriptions filled (accounting for approximately 3.9 billion prescriptions) while accounting for only 12% ($98 billion) of the total drug spend in 2024. Conversely, brand-name drugs accounted for only 10% of prescriptions (approximately 435 million prescriptions) yet accounted for 88% ($700 billion) of the drug spend.
It’s clear from these lopsided numbers that generic medications generate significant saving for consumers and, in 2024, AAM reports that generics saved consumers $446.8 billion and biosimilars savings for consumers amounted to $20.2 billion for a total generic and biosimilar savings of $467 billion in 2024. In addition, AAM reports that the total generic and biosimilar savings for consumers amounted for $3.4 trillion over the past ten years.
Looking at two of the biggest federal programs, Medicare and Medicaid, the generic savings were $142 billion ($2,643 per beneficiary) and $62.1 billion ($782 per enrollee), respectively.
The report notes that, as of July 2025, there are 84 approved biosimilar products, accounting for 21 different reference products, yet only 67 of the approved biologics are marketed. Of the 67 marketed products, 25 are designated as interchangeable. There are additional barriers hindering adoption of the use of biosimilars, including patents and the issue of interchangeability, that the Agency is attempting to address. The AAM report states, “More remains to be done: biosimilar adoption has been slower than anticipated due to brand biologic rebate barriers—90 percent of brand biologics with [patent] expiries in the next 10 years do not have a biosimilar in development.” AAM suggest that “[p]olicymakers must take action to reduce the cost of biosimilar development and ensure more rapid adoption of these lower-priced medicines.” Another interesting fact is that generics and biosimilars account for only 1.2% of total healthcare costs.
The report also addresses issues that impact the uptake and availability of generics and biosimilars, such as the so-called “race to the bottom” in pricing, which is causing an unsustainable deflation in generic prices that forces firms to stop manufacturing certain products that are no longer profitable, which can lead to unintended drug shortages that hamper patient care. There is a delay in coverage in federal programs and PBMs that must be addressed to afford patients access to generics and biosimilars immediately after FDA approval.
The report discusses other policy issues impacting the market for generics and biosimilars as well as other factors with pricing and the uptake of certain products. Please be certain to read the entire report as it’s an important document that expresses issues that must be resolved to foster the continued savings that generic drugs and biosimilars have delivered for American consumers over the decades.
