Generic drugs

The downside of cheap generics

Illustration of a tree shedding pills instead of leaves.
Illustration: Aïda Amer/Axios

Generic drugs are becoming both more available and cheaper, but that can have steep consequences, including shortages and safety issues.

The big picture: The number of generics being approved keeps hitting new records, they now make up 90% of all prescriptions dispensed, and these generics keep getting cheaper.

New drugs are launching with ever-higher prices

Pill breaking open spilling $100 bills.
Illustration: Eniola Odetunde/Axios

The average launch prices for new brand-name drugs have skyrocketed over the past decade, according to an analysis from drug research firm 46brooklyn.

Why it matters: The U.S. prescription drug market increasingly has thrived on high initial price tags and subsequent increases. That has resulted in higher premiums and out-of-pocket costs for new drugs, as well as more expensive generics.