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# Generic Drug Prices Increasing Over Time
- URL: https://www.fdaweb.com/generic-drug-prices-increasing-over-time/
- Published: 2017-08-02T12:00:00.000Z
- Updated: 2026-09-14T22:38:22.000Z
- Author: David McFarland
- Tags: Drugs, #legacy-id-D5139292

A National Bureau of Economic Research (not a government agency) working paper surveying “The Landscape of U.S. Generic Prescription Drug Markets, 2004-2016,” says there is evidence to suggest that prices of generic drugs are statistically significantly increasing over time, particularly following implementation of the 2010 Affordable Care Act and the 2012 Generic Drug User Fee Amendments. Price increases are positively correlated with reduced manufacturer counts and alternative measures of increased supplier concentration, holding all else constant, the [report](http://www.nber.org/papers/w23640.pdf?ref=fdaweb.com) says.

The analysis says the median size of generic drug markets is predominantly small, with annual inflation adjusted sales revenues of less than $10 million, but increasing over time. The median number of manufacturers in each market is about two, with the mean about four.

“We find evidence to suggest decreasing numbers of suppliers over our study period,” the authors say, “particularly following implementation of the Affordable Care Act and the Generic Drug User Fee Amendments, attributable both to more exit and less entry.”

About 40% of markets are supplied by one manufacturer. The economists say the share of markets supplied by one or two manufacturers is observed to increase over time and is more likely among non-oral drugs and those belonging to selected therapeutic classes.

The authors conclude that it is surprising generic drug prices have not been observed to be higher and potentially risen more over the study period, and suggest the issue merits further study.