AARP Report Posted On Price Inflation for Generics

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AARP Report Posted On Price Inflation for Generics

The price of some generic drugs that have been around for years are starting to climb again even after some relief in 2014. As you know with the Pharmacy Industry being a free market, big brand name Pharma companies can capitalize on their existing patent by driving up drug prices because no other company can provide that medication. Once this patent expires, generic drug manufacturers can then create this medication and sell it for a fraction of the cost. This past May, the AARP Public Policy Institute (PPI) released a report regarding drug prices that showed in 2013 there was a 4% decrease in the cost of generic drugs, which is the slowest rate of decline in the previous seven years.

About 27% of generic drugs listed in the AARP PPI had a rise in drug prices, and the price of 97% of brand name drugs increased. A common generic drug that caused “sticker shock” was Doxycycline Hyclate (100mg, 500 count) that went from $20 to a gut wrenching $1,849 in April 2014 (Trxade currently has it listed for $259.39 wholesale). Even though Doxycycline Hyclate has lowered since last year, it is still over a 1,200% increase from 2013. I spoke with a customer at the Pharmacy last week who said her generic birth control that usually costs $5, is now $35 a month. How did this medication become 7 times more valuable overnight?

That’s a trick question because it didn’t! Even pharmacists are confounded by this change; “When we polled our members about a year ago, they were experiencing a rash of dramatic price increases for generic drugs,” says Kevin Schweers, a senior vice president of the National Community Pharmacists Association, which represents small independent drugstores. “Some of the rises occurred virtually overnight. And it continued to snowball and impact more and more medications” (aarp.org). Generic drug price inflation has been so steep lately, that the Senate Subcommittee on Primary Health and Aging held a hearing to investigate. There is no easy answer as to why generic drug prices have soared to double their original price and in some instances as we have highlighted have even risen to over 1,000%!

Some think it’s due to less competition from mergers, others believe it could be caused by an increase in production cost, but the majority of us know that it is most likely unfounded. Panic is starting ensue for the uninsured as they won’t be able to afford some of the generic medications they have grown accustomed to getting at a fraction of the cost, Medicare recipients will experience higher copays or higher percentages, and all taxpayers should be on alert as we take on the responsibility of paying half of the bill for all prescription drugs through government programs. There’s no easy solution on how to combat this unruly price inflation, but further government regulation, price transparency, additional competition (including China which we covered last week), and a simpler coverage system could help.

References:

http://www.aarp.org/health/drugs-supplements/info-2015/prices-spike-for-generic-drugs.html

Teitelbaum, J., & Wilensky, S. (2nd Ed., 2013). Essentials of Health Policy and Law. Burlington, MA: Jones & Bartlett Learning, LLC.

Will “Made In China” Be Good For The Pharma Industry?

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Will "Made In China" Be Good For The Pharma Industry?

In the past medications from China were looked down upon and not trusted by many physicians around the world, including their own Chinese doctors. These medications are completely unregulated and have not been approved by the Chinese FDA. On appearance alone, many of the medications look identical; however, these medicines are dangerous and even fatal partly due to a lack of expertise, a shortage of quality manufacturing facilities, a small pool of talent to choose from, and a slow approval process by the State Food and Drug Administration (SFDA).

Gradually they are raising the standards of their drug manufacturing processes. Some Chinese pharmaceutical companies are even partnering with American pharmaceutical companies to ensure better quality and a higher efficacy rate. These partnerships and the government’s efforts to incentivize privately owned businesses in China could revolutionize the pharmaceutical industry bringing costs down. Do you think this could have the potential to reduce drug prices in the U.S.? It does seem to be plausible.

Get an Additional $30-$50 on Diabetic Claims

The voice of the customer is extremely important to us. When you speak, we listen. Did you know that if you ‘TRxADE it”, you can not only save money on insulin, but you can also save money on complimentary DME products as well? Last week Courtney with Shellman Drugs in Shellman Georgia reached out to us to let us know due to TRxADE they are making an additional $30-$50 per claim by purchasing insulin, syringes, and test strips on the TRxADE buying platform.

TRxADE is your one-stop-shop for all your Diabetic needs. We compare prices for several insulin suppliers, but also for syringes and test strips as well including overstock from peer pharmacies where allowed by state law.

Courtney may look familiar as two weeks ago we received a testimonial that due to TRxADE’s savings they went their first week in years without negative losses on reimbursements!

TRxADE it!

Before you place your order with your Primary or Secondary’s, TRxADE your order and compare pricing before buying! Save on medications especially with negative reimbursements. Many pharmacies have grown accustomed to rebates, high volume discounts or kickbacks. When you TRxADE it you get immediate savings, and hard cash immediately back into your pharmacy’s bottom line instantly. Stay profitable fellow pharmacies and join in our fight to ensure Independent Pharmacies Thrive, not just Survive! What are you waiting for? TRxADE it today!

References:

Drug Shortages On The Rise

Drug Shortages On The Rise

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Drug Shortages On The Rise

Global shortages of drugs are causing unnecessary surgeries, relapses of cancer, and even fatalities in the U.S. This is an ever-increasing problem that could affect you, your business, and your loved ones. In just five years, the shortage of drugs in the U.S. has risen to an amazingly high, 74%. The shortage has a broad coverage of drugs, from saline and anti-inflammatories to cancer treatments and anesthesia (Loftus, 2015). Even treatments as simple as a Vitamin A injection and pain medication can be hard to come by (Eban, 2014).

According to the Infectious Diseases Society of America, it is highly probable that in the near future, the U.S. will suffer from a drug shortage of five important injectables to prevent infection, which can have a significant negative impact on the care of our patients and the healthcare system as a whole. The FDA currently has 64 drugs on its Shortage list. To view a current list of drug shortages visit http://rx.trxade.com/drug-shortages/.

The FDA focuses on shortages of medically necessary products since these shortages have the greatest impact on public health. The FDA lists shortages primarily of medically necessary products. Shortages that are expected to be resolved quickly or which involve only a particular strength or package size, are not usually listed on FDA’s Drug Shortage list.

TRxADE Helps Acquire Drugs in Short Supply

Ketorolac Tromethamine is an example of an important anti-inflammatory medication that is in short supply. TRxADE currently has 6 suppliers representing 3 different manufacturers of Ketorolac Tromethamine on its online comparison shopping platform. TRxADE is a great resource to search multiple suppliers, price compare, and acquire drugs in short supply and high demand.

Causes of U.S. Drug Shortages

There are multiple factors that contribute to drug shortages, both due to a lower supply and a higher therapeutic demand. Some of the specific factors are quality requirements, internal or external price referencing, manufacturing process requirements, and even noncompliance (Weerdt, Simoens, Hombrockx, Casteels, & Huys, 2015). Knowing the exact cause of a shortage in drug supply can be difficult to determine “because manufacturers have no legal obligation to transparency” (Valquette & Laupland, 2015).

The FDA states the top reported reason a drug shortage occurs is due to quality/manufacturing issues. On their website they explain “However there have been other reasons such as production delays at the manufacturer and delays companies have experienced receiving raw materials and components from suppliers. Discontinuations are another factor contributing to shortages. FDA can’t require a firm to keep making a drug it wants to discontinue. Sometimes these older drugs are discontinued by companies in favor of newer, more profitable drugs.

With fewer firms making older sterile injectable drugs, there are a limited number of production lines that can make these drugs. The raw material suppliers the firms use are also limited in the amount they can make due to capacity issues at their facilities. This small number of manufacturers and limited production capacity for older sterile injectables, combined with the long lead times and complexity of the manufacturing process for injectable drugs, results in these drugs being vulnerable to shortage. When one company has a problem or discontinues, it is difficult for the remaining firms to increase production quickly and a shortage occurs.”

References:

Eban, K. (2014, June).  Drug shortages: the scary reality of a world without meds. Reader’s Digest.

Loftus, P. (2015, May). U.S. drug shortages frustrate doctors, patients. The Wall Street Journal.

Valquette, L., & Laupland, K. (2015). Antimicrobial shortages: another hurdle for clinicians. The Canadian Journal of Infectious Diseases & Medical Microbiology, 26 (2), 67-68. Retrieved from: search.proquest.com

Weerdt, E., Simoens, S., Hombroeckx, L. Casteels, M., & Huys, I. (2015, March). Causes of drug shortages in the legal pharmaceutical framework. Science Direct-Regulatory Toxicology and Pharmacology, 71 (2), 251-258. doi:10.1016/j.yrtph.2015.01.005.