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# GAO Report Finds Generic Drug Prices Decreased Over 5 Years
- URL: https://www.fdaweb.com/gao-report-finds-generic-drug-prices-decreased-over-5-years/
- Published: 2016-09-14T12:00:00.000Z
- Updated: 2026-09-14T21:31:52.000Z
- Author: David McFarland
- Tags: Drugs, #legacy-id-D5136809

A new Government Accountability Office [report ](http://gao.gov/assets/680/679022.pdf?ref=fdaweb.com)finds that generic drug prices fell 59% from the first quarter of 2010 through the second quarter of 2015\. However, the report says, a group of 1,441 established generic drugs saw increases after their prices first declined.

“More than 300 of the 1,441 established generic drugs analyzed had at least one extraordinary price increase of 100% or more between first quarter 2010 and first quarter 2015,” GAO says. “GAO found that drugs with extraordinary price increases moderated the overall decline in generic drug prices. Additionally, the extraordinary price increases generally persisted for at least one year and most had no downward movement after the extraordinary price increase.”

GAO says that because recent price increases of certain generics may limit Medicare cost savings, it was asked to examine price trends for generic drugs and the factors that affect prices. It says manufacturers reported that “competition, determined by the price and availability of the same drug from other manufacturers, is the primary driver of generic drug prices, as less competition could drive prices higher. Stakeholders noted that the level of competition in the generic drug market is influenced by a variety of factors, including raw material shortages, production difficulties, consolidation among manufacturers, and a backlog of new generic drug applications awaiting federal review.”