Key result
Rising costs of generic and specialty drugs were mostly driven by new product entry (e.g., 71.1% of oral specialty cost increases), whereas brand-name drug costs rose due to existing price inflation.
Why the study?
It was unknown to what extent rising drug costs are driven by price inflation of existing drugs versus the entry of new products.
Population
Oral and injectable drugs used in the outpatient setting from 2008-16
Comparison
Contribution of new product entry vs existing product inflation
Design
Retrospective pricing data and pharmacy claims analysis
Authors
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May inform targeted cost controls on new entrants; leaves open effects on cardiovascular outcomes and access.
Observational
Rising costs of generic and specialty drugs are primarily driven by new product entry, while brand-name drug cost increases are driven by price inflation of existing drugs.
Hernandez et al. (2019) conducted an observational in Rising drug costs. New drug entry vs. Existing drug price inflation was evaluated on Contribution of new versus existing drugs to the changes in costs of oral and injectable drugs. Rising costs of generic and specialty drugs were mostly driven by new product entry (e.g., 71.1% of oral specialty cost increases), whereas brand-name drug costs rose due to existing price inflation.
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