JANUARY PHARMACEUTICAL SALES INCREASE 8 PERCENT, REPORT SAYS

Domestic pharmaceutical sales in January were approximately 8 percent higher than in the same period a year earlier, but the growth rate has slowed in recent months, according to an IMS Health report.

November saw 10 percent sales growth and December had 9 percent, the report said. However, January's 8 percent sales increase was still up from the full year 2006 rate of 7.4 percent growth, IMS added. January pharmaceutical sales totaled approximately $22.5 billion, according to the report.

January's sales growth rate was also higher than the 45 percent growth rate that IMS forecast for all of 2007. The increase was partially due to Medicare Part D demand, as seniors who were close to the "doughnut hole" coverage gap at the end of 2006 could begin drug purchasing in January without spending out of pocket, IMS said.

The study also implies a 0.3 percent increase in average price per prescription in January, IMS said. That is the smallest rate of increase in prescription price per month since October 2005, a Merrill Lynch analyst said.

For 2006, the overall implied increase in prescription prices was 3.2 percent, the highest in a year, the analyst added.