Generic dispensing rate

Definition

The share of prescriptions filled with generics, where nearly all of the margin lives.

Why It Matters

Brand scripts move a great deal of revenue at almost no gross profit, so a pharmacy with high sales and a low generic rate is a large business and a small one at the same time. Ask for the rate by month with gross profit per script beside it, and ask what happens when a large brand goes generic, because that single event can change the shape of a year in either direction.