AARP: Drug prices up before patent expires

WASHINGTON, March 28 (UPI) -- Drug makers are hiking their prices before they face competition from generics as some medications near the end of their U.S. patents, AARP officials say.

The AARP Rx Price Watch report found in 2010, prices for medications soon to face generic competition increased by an average of 13.7 percent in 2009, compared to 8.3 percent for all drugs studied.

The analysis -- 217 brand name drugs most commonly used by Medicare patients -- suggests drug makers are hiking prices shortly before they face competition from cheaper generic versions.

However, the study also finds brand name drug prices continue to increase after the introduction of generic competition, indicating consumers who choose a brand name product once a generic is available don't get a price break.

"Skyrocketing prices of prescription drugs have for years been a threat to the very people who rely on those drugs," John Rother, AARP executive vice president, says in a statement. "The additional price spike for those drugs nearing the end of their patent protections only adds insult to injury and calls into question the commitment of the industry to keeping healthcare affordable."

The report found retail prices for 15 brand name drugs that faced generic competition in 2010 rose by 51 percent from 2005 to 2009 -- an average increase of $762 for a one-year supply of a drug -- but the majority of the price increase took place within the last two years before patent expiration.