And Those Prescription Drug Prices Keep On Rising
14 CommentsBy Ed Silverman // April 14th, 2011 // 8:43 am
The latest monthly tally for prescription meds shows that prices rose again last month, compared with a year ago. Specifically, there were 14 price increases, up an average 6.7 percent, versus price hikes on 10 drugs in March 2010 that averaged 6.5 percent, according to Barclays Capital analyst Lawrence Marsh, who reviewed data from First DataBank on the top 130 brand-name prescription drugs.
Going back in time, there were 19 price increases in March 2009, but the average price hike was 6.0 percent. In March 2008, prices rose on just eight meds at an average increase of 9 percent, while in March 2007, there were price increases on seven drugs at an average of 4.9 percent. And in March 2006, drugmakers boosted prices on seven meds at an average 5.8 percent.
Last month, Marsh found price hikes for six meds, averaging 9 percent. And in January, there were 59 price increases, averaging 8.2 percent. Combining prices hikes for the first quarter, the year-to-date price increases amount to 7.9 percent. This amounts to the largest first-quarter price hike over the past decade - last year, the first-quarter price increases amounted to 7 percent and were about 6.5 percent in 2009. And the price hikes made in the first-quarter of 2008 were 7.8 percent.
Which drugmakers led the pack? Merck raised prices on four meds - the Januvia and Janumet diabetes pills each rose 7.5 percent price, while the Vytorin and Zetia cholesterol pills each jumped 5.3 percent. However, the most notable increases were made by Eli Lilly, which raised the cost of its Zyprexa antipsychotic by 9.5 percent; the price of its Strattera ADD med rose by 9.4 percent, and the cost of its Evista osteoporosis drug was up 9 percent. Of course, Lilly faces a big patent cliff and is trying to boost revenue as much as possible to compensate for upcoming sales declines. Another big increase was taken by Bayer for the price of its Yaz contraceptive, which went up 9.5 percent.
For 2010, Barclays found prices rose on 181 meds, averaging 6.9, compared with 185 price increases avarege 6.6 percent the year before. Overall, the magnitude of price activity in 2010 was the highest Marsh wrote that he has seen in the past decade.
EddieVos
WHAT .. Zetia and Vytorin MORE expensive! It’s surprising they are still on the market having shown not to have a clinical benefit.
In the same ‘vein’, Crestor was once $2.25/pill and currently retails for $6/pill at ite-Aid, Vermont].
For reality, BMJ this week had a cost-effectiveness analysis [modelling] that showed that in Holland, generic Zocor [simva] sells for 9 Euros/year. That is about $0.035 / day. The study concluded that even at that cost, a statin “seemed” not cost effective in primary prevention. In secondary prevention, the result would be the same since statins don’t save people, a fact certain for Lipitor and most other statins and for all statins in women.
Vytorin anyone?
Mike Wokasch
Unfortunately for those who must take branded prescription drugs (no generic therapeutic alternatives available), the prices will continue to increase. Only in the pharmaceutical industry can you expect your customers (patients) to pay for years of industry wasteful spending, operational inefficiencies, and lack of research productivity. http://www.PharmaReform.com
industry insider
I say get rid of Medicare Part D because like any large price support system as it causes huge market imbalances. Be rid of it and let pricing find a reasonable balance.
EddieVos
Industry Insider, I have no clue about Medicare Part D but does it not start with MDs prescribing drugs for some fatal diseases (and others) that don’t work at any cost.
DOCTORS are the problem: they sign all prescriptions.
How many lives have been extended by statins, ezetimibe or the above mentioned Januvia? Yet, patients take them NOT having been informed by their doctors that there is no possible or credible mortality benefit regarding the fatal diseases they are prescribed for.
industry insider
Eddie, patients are also the problem. After the doctor has kept the patient stewing in the waiting room for an extra hour, that patient feels that their visit is justified only if the Dr. writes the Rx for that very expensive drug that the patient saw DTC’d on television, when maybe a generic or OTC product may do equally well. Both MD and patient are satisfied, and the MD can resume seeing the other 59 patients he has booked for the day in order to make a decent living on the 17 cents on the dollar that Medicare is paying him to see each patient.
M Helm, MD
Mike Wokasch - To what conditions are you referring. The vast majority of common medical conditions can be well treated - often best treated - with lifestyle modification plus or minus inexpensive generic medications. Sure there are a few (mostly “orphan”) conditions where either the patent clock hasn’t run out or where the market size is such that multiple manufacturers aren’t in the mix, but these are relatively few. I’m wondering what you are including?
Mike Wokasch
M Helm,MD
I believe there are still quite a few patients (with diseases like Alzheimer’s, Parkinson’s, cystic fibrosis, and many cancers) who feel their drug treatments are less than optimal if not outright ineffective or intolerable (side effects). As for rare or small population diseases (including multi-drug resistant bacterial infections) there are plenty of opportunities for new treatments. http://www.PharmaReform.com
Annie C
CEO of PhRMA Castellani said costs for Medicare Part D were 40% below projected costs. But I believe that was due to seniors choosing cheaper generics than more expensive brand name drugs. In 2010, 78% of prescriptions were for generics.
Because of Medicare’s doughnut hole, some beneficiaries opted to take infusion drugs, considered a “treatment”, covered under Part B, rather than pay the full cost of an injectible drug, covered under Part D. (An example, taking Remicade instead of Enbrel – expensive biologics to treat rheumatoid arthritis.)
But now that the ACA reduces the cost while in the gap in drug coverage to 50% of the drug cost, more seniors may opt to take injectibles, like Enbrel. The maker of Enbrel’s response? It raised the price of Enbrel, that was $1,500 a month, by over 5% in 2010.
Those taking biologics like Enbrel or Remicade will not have the option of more affordable generic versions for years, despite these drugs going off patent(enbrel goes off patent in 2012). The FDA has just begun to work toward creating a regulatory approval process for biologic generic versions – “biosimilars.”
With increasing use of generics, my fear is that to make up for loss revenue, drug companies will simply keep increasing the price of expensive biologics and patients, like those w/rheumatoid arthritis, will end up paying more and more or go without.
john ragland
how does any company have the guts to raise the price of a drug–lipitor 90% in one big jump? last month at my pharmacy it was 45.oo, today it wss 80.73. it seems to me if theres going to be a drug plan the fed needs to step on the greedy ones, like phizer. it really hurts the older generations to live longer but maybe by raising the price maybe we’ll all die off and they won’t have to make it anymore
original industry insider
John, tell your doctor to prescribe generic zocor-just as good as Lipitor, and only $4.00/month at the big box stores.
Reality Check
John,
This wasn\’t a drug company price increase. Pfizer has had aggressive price increases, but nothing approaching 90%. More likely, depending upon your insurance, your co-payment changed. If you are in a Medicare plan, you may have reached the \"donut hole.\" Rest easy, though, later this year a Lipitor generic will enter the market and the price should begin to drop.
Dude
I agree with original industry insider, there are alternatives.
Tom Brett
Just came across a 50% increase in my 90 day script for Quinapril by Greenstone, Ltd. (a division of Pfizer).
I paid $57.09 instead of my usual $25.99!
Pharmacy is COSTCO in Westbury, NY 11590.
Costco says I paid the proper price!
Greenstone (800-447-3360) would not discuss price but did say they were unaware of any major price increase of Quinapril !!
Generics King
Tom, there are 12 generic makers of Quinapril. You should be able to get a better bargain.
http://www.accessdata.fda.gov/scripts/cder/drugsatfda/index.cfm?fuseaction=Search.Overview&DrugName=QUINAPRIL%20HYDROCHLORIDE