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Brand-New Prescription Drug Pricing

Lack of Therapeutically Equivalent Drugs and Limited Competition May Contribute to Extraordinary Price Increases

The growing cost of brand-name prescription drugs (BNPD) -- FDA-approved drug products that typically have patent protection -- is a concern for patients, payers, and providers of health care -- particularly when price increases are large and occur suddenly. A 2008 congressional hearing drew attention to some small market prescription drugs that had an extraordinary price increase -- 100% or more at a single point in time. This report examined extraordinary price increases for BNPD. It examined the: (1) frequency of extraordinary price increases for BNPD from 2000 to 2008; (2) characteristics of the BNPD that had extraordinary price increases; and (3) factors that contributed to the extraordinary price increases experienced by these BNPD. Illustrations.

The growing cost of brand-name prescription drugs (BNPD) -- FDA-approved drug products that typically have patent protection -- is a concern for patients, payers, and providers of health care -- particularly when price increases are large ...