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Related Concept Videos

Prescription, Nonprescription and Orphan Drugs01:02

Prescription, Nonprescription and Orphan Drugs

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Prescription drugs require a prescription from a medical practitioner and can only be obtained from a pharmacy. They have many applications, including treating pain, anxiety, and hypertension.
The misuse and addiction to prescription drugs is a growing problem that can affect people of all age groups, specifically teenagers. This can happen when prescription medications are used in ways not intended by the prescriber, such as taking someone else's prescription or using medication for...
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Drug Nomenclature01:17

Drug Nomenclature

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During the development of a new pharmaceutical, the manufacturer initially assigns a code name to the drug. Once approved, the drug receives a United States Adopted Name (USAN)—a generic, nonproprietary designation. Upon being listed in the United States Pharmacopeia, this nonproprietary name becomes the drug's official name. Additionally, the manufacturer assigns a proprietary name or trademark, which serves as the brand name under which the drug is marketed. It is worth noting that...
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Drug Dosage Regimen: Overview01:15

Drug Dosage Regimen: Overview

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A drug dosage regimen describes the specific instructions and schedule for administering a drug to a patient. It considers factors such as drug dosage, frequency, route of administration, and duration of treatment. Designing an appropriate dosage regimen for a patient aims to achieve a target drug concentration at the site of action.
Typically, the starting dose and dosing interval are guided by the manufacturer's recommendations based on clinical trials conducted during and after drug...
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Prodrugs01:30

Prodrugs

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Prodrugs are a class of pharmaceutical compounds that undergo a biotransformation process within the body to be converted into a pharmacologically active drug. Prodrugs are designed to improve the therapeutic properties of the parent drug, such as enhancing bioavailability, increasing stability, or reducing toxicity. The concept of prodrugs revolves around modifying the chemical structure of the original drug to make it more effective or convenient for administration.
Prodrugs help overcome...
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Drug Control Governance: Regulatory Bodies and Their Impact01:03

Drug Control Governance: Regulatory Bodies and Their Impact

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Drug control governance involves the oversight and regulation of pharmaceuticals to ensure their safety and efficacy while preventing illegal drug use and trafficking. Regulatory bodies, including the US Food and Drug Administration (FDA) and the European Union's European Medicines Agency (EMA), play a central role in this process. These agencies evaluate the safety and efficacy of drugs before they can be marketed. They fund clinical trials and assess the benefits and risks associated with...
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Drug Regulation01:25

Drug Regulation

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Drug regulation encompasses the management of drug usage by evaluating its safety and efficacy through assessments conducted by regulatory authorities. Regrettably, the history of drug regulation is marred by several catastrophic events. One such incident is the Elixir Sulfanilamide tragedy, in which the toxic compound diethyl glycol was included in a sweet-tasting medication, leading to numerous fatalities. This event prompted the enactment of the Food, Drug, and Cosmetic Act in 1938. Under...
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Drug Pricing Stewardship from Mark Cuban's Cost Plus Generic Drug Program.

Snigdha Gulati1, Mohak Gupta2, TingTing Yan3

  • 1Department of General and Thoracic Surgery, Cleveland Clinic, Cleveland, OH, USA.

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|August 21, 2024
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US Medicare Part D could save $8.6 billion on generic drugs by adopting lower-cost pricing. Targeted interventions in specific medical specialties can maximize these savings for prescription medications.

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Area of Science:

  • Health Economics
  • Pharmaceutical Policy
  • Healthcare Management

Background:

  • US prescription drug spending is high, partly due to inefficient generic drug distribution and reimbursement.
  • Potential savings and intervention areas for generic drug prescribers are not well understood.

Purpose of the Study:

  • To analyze 2021 Medicare Part D generic drug spending.
  • To compare this spending with pricing from the Mark Cuban Cost Plus Drug Company (MCCPDC).
  • To estimate potential achievable savings.

Main Methods:

  • Retrospective, observational study analyzing Medicare Part D data (2021) and MCCPDC pricing (August 2023).
  • Systematic analysis of potential savings using MCCPDC generic pricing.
  • Outcomes included prescription volume, proportion of drugs with savings, total Medicare savings, and price reduction per unit, stratified by medical/surgical subspecialties.

Main Results:

  • Estimated Medicare Part D savings of $8.6 billion using 90-day MCCPDC pricing.
  • Surgical drugs contributed over $900 million to potential savings.
  • Nearly 80% of drugs were cheaper via MCCPDC; highest absolute savings in cardiology, psychiatry, neurology, transplant, and urology.
  • Disproportionate savings relative to volume seen in oncology, gynecology, infectious disease, transplant surgery, and colorectal surgery.

Conclusions:

  • Significant Medicare Part D savings are possible by addressing systemic overpayments for generic medications.
  • Identified key areas for reform in generic drug pricing and distribution.
  • Specific medical and surgical subspecialties are prime targets for interventions to achieve substantial savings.