Abstract
To assess the magnitude of price difference between generic and innovator medicines and to evaluate the effect of the price competition between them. From January 2000 to June 2004, 135 generic medicines and their respective innovator medicines were followed up for a period of up to four years. Prices were extracted from pharmaceutical market specific publications and recorded from the launching of generics and during their marketing period. The generic medicines were introduced on average at prices 40% lower than the innovator ones and this difference tended to increase over the years. The price difference between generic and innovator medicines increased in the subsequent four-year period after generic launching in 68%. The introduction of generic medicines in the Brazilian pharmaceutical market contributed for offering cheaper medicines. However, the competition between generic and innovator medicines did not promote markdown of the majority innovator medicines.
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