U.S. Prescription Drug Sales Increase 8.3% in 2004

U.S. prescription drug sales rose 8.3% in 2004, the smallest gain in nine years, hurt by Merck & Co.’s recall of Vioxx and over-the-counter versions of ulcer medicines such as AstraZeneca’s Prilosec.

Sales increased to $235.4 billion from $217.3 billion in 2003, said IMS Health Inc., a Fairfield, Conn.-based tracker of prescription-drug data. Among other factors crimping growth were a mild flu season, higher consumer co-payments for medicines and safety concerns about antidepressants, IMS said.

Prescription drug sales will gain less than 10% again this year, IMS said, as managed-care insurers seek new ways to control costs, and products such as Pfizer Inc.’s antibiotic Zithromax lose patent protection.

Although Medicare prescription drug cards and the import of medicines from Canada were among the most talked about industry topics of 2004, their effect on pharmaceutical sales last year was minimal, IMS said.

The Medicare discount cards rolled out in June accounted for only 1.2% of total drug sales and 5.1% of all sales to senior citizens, IMS said. The Medicare program will expand prescription drug coverage to about 41 million elderly and disabled in 2006.

U.S. consumers purchasing drugs from Canada, where government controls keep prices cheaper, had only a small influence last year, IMS said. Drugs imported from Canada accounted for less than 1% of overall U.S. pharmaceutical revenue, which was $235.4 billion.

Pfizer remains the No. 1 seller of prescription drugs in the U.S., followed by GlaxoSmithKline, Johnson & Johnson, Merck and AstraZeneca. Amgen Inc. is the only biotechnology company to appear on the list, landing the No. 8 spot for the second consecutive year. Thousand Oaks-based Amgen is the fastest growing company on the list.