MGA Report: Teva’s generics saved the U.S $28.8B in 2020

Teva released a new report highlighting the billions of dollars saved by the healthcare system due to its generic medicines, and the company’s contribution to economies in 2020.

“Teva’s Economic Impact Report, an independent study by Matrix Global Advisors, demonstrates how Teva saved $43.1 billion across its major markets in 2020 alone. These major markets represented 75% of Teva’s revenues in 2020.

During the COVID-19 pandemic, Teva’s manufacturing, distribution and R&D sites remained open to continue supplying medicines to roughly 200 million patients every day. 

“During 2020, Teva continued to provide access to quality affordable medicines, despite the challenges brought by the pandemic,” said Kåre Schultz, president and CEO of Teva. “The report released today shows the extent to which our leadership in generics contributes economic benefits and healthcare savings, particularly in the United States, where we saved $28.8 billion in healthcare costs in 2020 alone, $4.2 billion of which are savings to patients.”

[Read more: Rolling with the punches: Generics firms innovate, expand scope to stay competitive]

In the US, Teva’s 11 manufacturing sites supply 11 billion doses annually. Teva medicines accounted for one of every 10 generic prescriptions in 2020. The company’s economic activity also supported more than 57,000 U.S. jobs and contributed $15.7 billion in economic output in the United States.

Teva is the leading generic medicine company in Europe, where it operates 32 manufacturing and R&D facilities. Across 9 major markets in Europe, Teva saved healthcare systems $9.6 billion in 2020, supported more than 100,000 jobs and contributed $29.5 billion to economic output.

“Teva employs approximately 40,000 workers in 60 countries around the world and had net revenues of $16.7 billion in 2020. But Teva’s economic impact is not just as an employer and job creator. As one of the largest manufacturers of affordable generic medicines, Teva saves patients and payers around the globe billions of dollars each year in lower prescription-drug costs,” said Alex Brill, CEO of MGA.

Combining its strength in generic medicines and knowledge of specialty drugs, Teva is developing its pipeline and portfolio to increase access to affordable medicines, including through the development of biosimilars—highly similar less-costly versions of the reference branded biologic drugs, which are made from living cells or organisms. As the U.S. biosimilars market continues to develop, savings are expected to grow and surpass $100 billion from 2020 to 2024.

With more than 10 biosimilars approved or in development, and building off of 800 new generic medicine marketing authorizations obtained in 2020, Teva said it would continue to generate savings for healthcare systems, patients and economies across the globe.