Sleep Medication: Savings Opportunity With Generic Insomnia Treatment

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2007-04-30 12:46

Generic Insomnia Treatment

As more Americans turn to medications for a good night's sleep, the introduction of a generic version of Ambien (zolpidem tartrate) presents multi-million dollar savings for consumers and health plan sponsors, helping to offset spending growth in what has become one of the fastest growing categories of prescription drugs.

According to research released by Medco Health Solutions, Inc., use of prescription sleep medications has grown significantly between 2001 and 2006; yet the availability of generic zolpidem -- an equivalent version of the blockbuster prescription drug Ambien -- could produce savings in excess of $150 million per year for Medco's plan sponsors and their members, helping to ease the financial burden of treating sleep disorders for consumers and health plan sponsors.

"The brand-name monopoly on this drug category that was in part created by hundreds of millions of dollars spent each year in direct-to-consumer marketing and advertising -- is now over," said Laizer Kornwasser, senior vice president, channel and generic strategy, Medco. "With a lower cost option available, and growing comfort level across the board with using generic medications to save money, consumers and plan sponsors are clearly set up to save tremendously."

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As of April 27, the FDA has approved 15 different manufacturers to make zolpidem -- a medication used for treating short-term bouts of insomnia -- in 5 mg and 10 mg doses. The generic version of the Sanofi-Aventis drug was launched immediately. Ambien has been used by millions of patients since it was first approved in 1992, and generated $2.2 billion in U.S. sales last year alone -- more than half of all sales for the $4 billion sedative/hypnotic drugs category. Ambien maintained its strong market position despite several competing new sleeping medications.

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