Biologics Spending Still Rising, PBM Says
Make a commentBy Ed Silverman // April 25th, 2007 // 12:03 am

With generic biologics legislation rumbling around Congress, what better way to influence the debate over FDA guidance than with some scary numbers? And PBMs which, not surprisingly, favor greater use of generics, have plenty of numbers to throw around. Here’s the latest toss from Express Scripts, which today releases its annual argument for generic usage:
Last year, spending on biologics rose 21 percent, excluding spending on drugs in the medical benefit, such as those administered in a doc’s office. In 2005, spending increased 25 percent. The PBM also estimates overall biologics costs will reach $99 billion by 2010 and account for 26 percent of total drug spending.
Of the six top biotech drug classes, five saw an increase in spending:
• Cancer therapies had the largest increase in spending at 39.5 percent, which was driven by new treatments introduced last year - Nexavar, Revlimid and Sutent;
• Multiple sclerosis spending increased 19 percent as a result of higher drug prices;
• Growth hormone deficiency spending rose 22.8 percent due to a 10.7 percent jump in the number of units per script and a rise in scripts for uses other than growth deficiencies in children;
• Drugs to treat inflammatory conditions experienced a 22.7 percent rise with additional treatment indications such as Humira for psoriatic arthritis;
Spending fell in only one therapeutic category - hepatitis C. The 8.3 percent drop was due to a lower cost per prescription and lower utilization. Unlike other specialty drug classes, there are generics for hepatitis C therapies.
The data can be found in the Express Scripts report being released today.
[tags]Biologics, Express Scripts, Generics[/tags]