The U.S. prescription drug market exhibits a complicated price structure, in which the price of a prescription can vary by 200% or more, depending on where the prescription is bought and who pays for it. While a number of recent studies have addressed the price of prescription drugs, they have typically examined it from a single perspective, such as the price of generics or the impact of high prescription prices on seniors. There is thus a need for an up-to-date study that addresses the growing trend towards price segmentation of the U.S. prescription drug market in its totality, and the business impact that this highly price-segmented market has had on manufacturers, distributors and dispensers of prescription drugs. This study uses a basket of widely used prescription drugs to identify the major price breaks in the market, and develops detailed market projections for each price tier through 2008.
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