Increased topical generic prices by manufacturers

Area of Science:

• Pharmaceutical Economics
• Drug Pricing Analysis
• Dermatology Therapeutics

Background:

• Limited data exists on generic medication pricing dynamics.
• Previous research focused on retail-level price changes, neglecting the manufacturer's role.
• Understanding price fluctuations in the pharmaceutical supply chain is crucial.

Purpose of the Study:

• To investigate the extent of price variations for generic topical medications.
• To analyze price changes at the manufacturer level for topical generics.
• To compare price trends of generic versus branded topical drugs.

Main Methods:

• Conducted a review of average wholesale prices (AWPs) for topical generics and their branded counterparts.
• Analyzed manufacturer data for 51 topical chemical entities.
• Compared AWP data from 2005 and 2016.

Main Results:

• The average wholesale price (AWP) for topical generic medications increased by 273% from 2005 to 2016.
• AWP for topical branded medications saw a larger increase of 379% during the same period.
• One topical generic experienced an AWP increase of 2529%, with eight of the top 20 price-increasing generics also showing more manufacturers.

Conclusions:

• Topical generic medication prices are escalating rapidly at the manufacturer level.
• These findings are specific to topical medications and may not apply to other drug classes.
• The study highlights significant price volatility within the topical generic drug market.