Generic, Biosimilar Medicines Saved US Health Care $496B in 2025

Generic and biosimilar medicines saved the US health care system $496 billion in 2025, according to the Association for Accessible Medicines’ (AAM) 2026 US Generic & Biosimilar Medicines Savings Report, developed in partnership with the IQVIA Institute. The total is nearly $30 billion higher than the 2024 figure, and it brings the 10-year savings total to $3.6 trillion, AAM said.1

AAM represents manufacturers of finished generic pharmaceuticals and biosimilars.2 The organization said the savings extend across the health care system, including patients, employers, and taxpayers,1 and that generic and biosimilar medicines contribute to a stable health care system, economic resilience, and national security.

The report, released by AAM and its Biosimilar Council, is the latest edition of AAM's annual savings analysis,1 and it marks a collaboration between AAM and the IQVIA Institute that has spanned more than 15 years.3,4 The prior edition, released in 2025, reported $467 billion in savings for 2024 and $3.4 trillion over the preceding 10 years.5 That report tied the outlook for patients to addressing barriers to the development and adoption of lower-cost medicines, and also flagged a "biosimilar void."6 Only 12 of the 118 biologics expected to lose exclusivity over the next decade had biosimilars in development.

Generics Fill vs Drug Spend

According to AAM, generics made up 89% of all US prescriptions filled in 2025, or about 4 billion prescriptions. However, those prescriptions accounted for only 11.6% of total prescription drug spending, or $106 billion. Branded drugs made up 11% of prescriptions filled, or 485 million. They accounted for 88.4% of spending, or $804 billion.1,7

The report also found that generics represented 1.1% of total US health care spending, according to IQVIA National Prescription Audit data from December 2025. AAM's fact sheet framed the findings as brand name drugs driving costs and generics driving savings. Based on those figures, spending on branded prescriptions was about 7.6 times the spend on generic prescriptions.7

Generic savings in Medicare totaled $166 billion in 2025, or $3011 per beneficiary, AAM reported.1,7 In Medicaid, generic savings totaled $70.2 billion, or $921 per enrollee. Together, the 2 programs accounted for $236.2 billion in generic savings, based on the reported figures. AAM said the savings are particularly valuable to Medicare, employer-sponsored health insurance, and the patients they serve. The organization also noted that many patients still pay too much for their generic prescriptions despite these savings.1

AAM Calls for Generics-First Policy

Biosimilar savings totaled $25.4 billion in 2025, up from $20.2 billion in 2024 according to the prior edition of the report, for an approximate 26% increase. Since the first biosimilar entered the US market in 2015, biosimilars have generated $81.6 billion in savings. The prior edition reported $56.2 billion through 2024.5,7

Patients have received 3.8 billion days of therapy with biosimilars since 2015. That includes 571 million incremental days that would not have occurred without biosimilar competition.7 AAM characterized those additional days as expanded patient access to care. It also said biosimilar use over the period has occurred with no unique clinical challenges.3,4

Alex Keeton, executive director of the Biosimilars Council and senior vice president of policy at AAM, said biosimilars are among the strongest options for widening access, building resilience in health care, and generating meaningful savings. He said the sector continues to face barriers related to market access, pricing dynamics, pharmacy benefit managers (PBMs), and patent challenges. He added that these barriers persist despite recent regulatory progress.4

John Murphy III, president and CEO of AAM, described generic and biosimilar medicines as "an indispensable, unique economic engine capable of driving affordable health care into the future." He said the market that sustains the industry is at risk, and he called for a generics- and biosimilars-first policy framework that eliminates structural obstacles to competition.1

Murphy also said the industry faces sustainability pressures. Those pressures could contribute to supply chain disruptions, drug shortages, and manufacturers leaving the US market. AAM is calling for policy changes, including streamlined FDA processes. It also wants measures addressing patent practices, PBM incentives, and federal drug pricing policies.4

In July, a House committee reported the Expedited Access to Biosimilars Act, and a Senate committee approved its companion bill, which would codify that comparative clinical efficacy and pharmacodynamic studies are not the default expectation for biosimilar licensure. The Center for Biosimilars® reported that patent, rebate, and reimbursement roadblocks still stall competition.8

AAM has also published a fact sheet, social toolkit, and data deck with the report.1

References

1. 2026 U.S. generic & biosimilar medicines savings report. Association for Accessible Medicines. Accessed September 21, 2026. https://accessiblemeds.org/resources/reports/2026-savings-report/
2. Generic and biosimilar patent settlements save $423 billion. News release. Association for Accessible Medicines. June 3, 2025. Accessed September 21, 2026. https://accessiblemeds.org/resources/press-releases/generic-and-biosimilar-patent-settlements-save-423-billion/
3. Lvy S. AAM: U.S. generic & biosimilar medicines saved $496B in 2025. Drug Store News. September 14, 2026. Accessed September 21, 2026. https://drugstorenews.com/aam-us-generic-biosimilar-medicines-saved-496b-2025
4. De Shong T. AAM: generics and biosimilars saved U.S. health system $496 billion in 2025. Chain Drug Review. September 11, 2026. Accessed September 21, 2026. https://chaindrugreview.com/aam-generics-and-biosimilars-saved-u-s-health-system-496-billion-in-2025/
5. 2025 U.S. generic & biosimilar medicines savings report. Association for Accessible Medicines. September 3, 2025. Accessed September 21, 2026. https://accessiblemeds.org/resources/blog/2025-savings-report/
6. Jeremias S. Biosimilars drive savings and access, yet looming development gap threatens future. The Center for Biosimilars®. September 23, 2025. Accessed September 21, 2026. https://www.centerforbiosimilars.com/view/biosimilars-drive-savings-and-access-yet-looming-development-gap-threatens-future
7. 2026 key facts: generics drive savings and add value. AAM/Biosimilars Council. Accessed September 21, 2026. https://accessiblemeds.org/wp-content/uploads/2026/09/2026-Generic-Biosimilar-Medicines-Savings_Key-Advocacy-Takeways_Fact-Sheet.pdf
8. Jeremias S. Biosimilar bills gain steam in Congress, but key reforms still wait. The Center for Biosimilars®. July 23, 2026. Accessed September 21, 2026. https://www.centerforbiosimilars.com/view/biosimilar-bills-gain-steam-in-congress-but-key-reforms-still-wait