In Substantial Increase in Public Preference for Generic over Brand Name Drugs, Harris found that the proportion of people who would more often pick branded drugs fell by nearly one-half, from 32% in October 2006 to 19% in December 2008.
The 93% of Americans who bought prescription drugs in 2008 increased purchases at discount stores like Wal-Mart, Target and Sam’s Club (owned by Wal-Mart). In October 2006, 13% of Americans bought drugs at these kinds of discounters; by December 2008, that proportion rose to 17%. Shopping for Rx’s online rose to 15% from 11%, and in supermarkets from 10% to 12%.
What retail channels fell in prominence between 2006 and 2008? The local independent pharmacy, which fell from 12% in October ’06 to 8% in December ’08; and, chain drug stores, which fell from 39% in 2006 to 33% in December 2008.
And that’s because it’s about the downturn in the economy and financial incentives that consumers face for prescription drugs. A copay of zero dollars, to $4 for some generics at Wal-Mart or Target, to perhaps $10 for a generic is much more attractive to a health consumer than $25, or $35, or higher prices at the point-of-purchase.
Harris points out that this is good news for cost containment. That’s if you’re wearing a payer or plan sponsor hat, from Medicare to employers who provide health insurance.
But if you’re a branded pharmaceutical manufacturer in the R&D business of new-drug breakthroughs, it’s altogether a different implication.




Thank you
Jane joined host Dr. Geeta "Dr. G" Nayyar and colleagues to brainstorm the value of vaccines for public and individual health in this challenging environment for health literacy, health politics, and health citizen grievance.
I'm grateful to be part of the Duke Corporate Education faculty, sharing perspectives on the future of health care with health and life science companies. Once again, I'll be brainstorming the future of health care with a cohort of executives working in a global pharmaceutical company.