Unsupported price increases netted drug manufacturers $5.1 billion
A new report examines seven drugs “for which there was no new clinical evidence that could support their price increases.”
Drug manufacturers in 2017 and 2018 hiked the prices of seven drugs to the tune of $5.1 billion–despite no new clinical evidence the drugs had improved, according to Institute for Clinical and Economic Review’s Unsupported Price Increase Report.
Drugs with unsupported price increases, according to the nonprofit include, Humira, with a 15.9 percent net price increase, resulting in $1,857 of increased spending; Rituxan, 23.6 percent, $806; Lyrica, 22.2 percent, $688; Truvada, 23.1 percent, $550; Neulasta, 13.4 percent, $489; Cialis, 32.5 percent, $403; and Tecfidera, 9.8 percent, $313.
Related: CVS Caremark going after ‘hyperinflated’ drug costs
The report, first in a new series, is the result of state policymakers asking the nonprofit to research and identify drugs “for which there was no new clinical evidence that could support their price increases.”
“The price of many existing drugs, both brand and generic, can increase substantially over time, and questions are frequently raised regarding whether these price increases are justified,” ICER writes. “State policymakers have been particularly active in seeking measures to address this issue.”
The report cites laws in California and Vermont that require drug manufacturers to submit information that might justify increases above a certain threshold.
“Despite these initiatives, there has been no systematic approach at a state or national level to determine whether certain price increases are justified by new clinical evidence or other factors,” ICER writes.
In an appendix, the nonprofit listed manufacturers’ responses to the findings. Many said that peer reviews or real-world evidence of the benefits of their drugs should have been included in ICER’s analyses, but the nonprofit replied that neither supports price increases because the drugs had not been improved.
Some manufacturers justified price increases for other reasons, including Neulasta maker Amgen Inc.
“Based on actual data, Neulasta’s net price change for the period evaluated is in line with inflation,” the manufacturer writes. “Amgen understands that the cost of prescription drugs is a concern for many people, and we are committed to the responsible pricing of our innovative medicines.
“For 2019, the projected weighted average list price increase across Amgen’s entire US portfolio of products is less than 3 percent, aligned with overall inflation and key pricing indices. For many Amgen medicines, there are no price increases. Amgen expects a single digit decline in the net price across our portfolio of all products in 2019 due to rebates and discounts negotiated with payers, providers, and others in the drug distribution chain to ensure patients continue to have access to our medicines.”
Amgen has publicly acknowledged that Neulasta’s net selling price actually decreased by 1 percent in 2018 and is expected “to decline by mid-single digits in 2019.”
While ICER responded to most of the manufacturers’ comments by justifying its methodology, the nonprofit’s response to Amgen’s comments was “Thank you for this information.”
Meanwhile, Congress currently has two competing drug pricing plans up for consideration: a bipartisan Senate plan and “a more sweeping plan” from House Speaker Nancy Pelosi (D-Calif.), according to The Hill.
“Reducing the cost of prescription drugs is a bipartisan issue, but it can be difficult to tell just how much patients pay,” The Hill writes. “Drug companies argue a drug’s list price—which doesn’t reflect the discounts negotiated with insurers or through patient assistance programs— is often higher than what the patient actually pays.”
“However, the ICER report focused on total U.S. drug spending rather than per-unit costs,” the publication writes.
Read more: