Generic drugs

The Wild West of generic drugs in Medicare

A pile of white generic drugs.
Generic drug capsules. Photo: Anton Vergun/TASS via Getty Images

Many generic drugs are "wildly overpriced" in Medicare, according to a new analysis of federal data from research firm 46brooklyn Research.

Why it matters: Health insurers and pharmacy benefit managers manipulate generic drug prices in Medicaid, and it appears more generics gaming occurs in Medicare — all on the back of taxpayers and patients.

Johnson & Johnson's stranglehold on a blockbuster drug

Data: Company documents; Chart/Axios Visuals

Sales of Remicade, Johnson & Johnson's blockbuster drug that treats autoimmune and inflammatory diseases, are declining. But the drug still controls more than 90% of the market and commands a high U.S. price tag even though cheaper versions have existed for almost 3 years.

The bottom line: Biosimilar competition for Remicade "is essentially a failed market," Bernstein pharmaceutical analyst Ronny Gal wrote in a note to investors on Tuesday.