National Pharmaceutical Council disputes findings by ICER on drug price increases
It argued the ICER study did not consider the full range of clinical data on the drugs it assesses, and that its analyses lack context.
A pharmaceutical industry group is pushing back against a recent report that said some drug price increases were not supported by clinical improvement.
The Nov. 16 report by the Institute for Clinical and Economic Review (ICER) said that among the top 10 drugs with price increases in 2020 that had substantial effects on US spending, seven of 10 drugs did not have new evidence of a new clinical benefit. The report focused on Humira, a rheumatoid arthritis drug—which, by itself, accounted for $1.4 billion of the $1.67 billion in additional drug spending.
Pharmaceutical manufacturers have questioned the ICER report, saying the group doesn’t consider the full range of clinical data on the drugs it assesses, and that its analyses lack context.
Pharmaceutical council responds
In response to the recent ICER report, the National Pharmaceutical Council (NPC ) released a statement criticizing the latest report.
“ICER focused on a narrowly selected group of medicines rather than the overall landscape, and then relied on incomplete evidence and inadequate analyses to fit the desired narrative,” the NPC statement said.
NPC said ICER moved the goalposts in its latest report, by expanding the number of drugs considered in the analysis and changing its definitions of drug price inflation.
In response, ICER noted that it worked with pharmaceutical groups to get their input on the analysis and said that it changed some methodology to capture inflation of drug prices more accurately.
NPC: Overall, drug price inflation is moderating
The back-and-forth between industry groups might obscure a positive trend: data showing U.S. drug price inflation has moderated in recent years. NPC’s statement outlined several findings that point to moderation of costs, including:
- A federal report that found drug prices decreased by 0.4% in 2019, after falling by 1.0% in 2018.
- A Drug Channels report in 2020 found that drug spending had grown more slowly than every other part of the U.S. health care system—while warning that useful data from Pharmacy Benefits Managers became more scarce in 2020.
- An IQVIA report that found net manufacturer prices — the cost of medicines after all discounts and rebates have been paid — declined 2.9% in 2020, continuing a downward trend for the past five years that was interrupted in 2019.
The debate continues as Congress considers legislation that would allow the government to negotiate prices for some drugs. The Build Back Better bill, currently being considered by the U.S. Senate, includes language on negotiating drug prices on a limited basis. Advocates and opponents of a larger government role in setting drug prices are likely to continue to argue about the data as high drug prices—regardless of changes in inflation—continue to be seen as unsustainable by many stakeholders.
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