US Trends In Anticancer Medicine Pricing And The Impact Of Competition, 2014-20

Area of Science:

• Health Economics
• Pharmacoeconomics
• Oncology Therapeutics

Background:

• Rising costs of anticancer medicines impact healthcare spending for both health plans and patients.
• Understanding price dynamics and competition is crucial for managing healthcare expenditures in oncology.

Purpose of the Study:

• To analyze pricing trends of anticancer medicines.
• To evaluate the impact of market competition, including generic and biosimilar entry, on these prices.

Main Methods:

• Utilized IQVIA data (October 2014-February 2020) for 185 anticancer medicines.
• Calculated volume-weighted wholesale costs, analyzed price trends by patent status, formulation, and therapeutic class.
• Employed regression analyses and event studies to assess the relationship between prices and competition, particularly post-exclusivity loss.

Main Results:

• Brand-name anticancer medicine prices generally increased, while generic and biosimilar prices decreased over the study period.
• Following loss of market exclusivity, generic and biosimilar prices declined, whereas brand-name prices remained relatively stable.
• Event studies revealed varied price trends after exclusivity expiry, indicating complex market dynamics.

Conclusions:

• Market competition, especially through generic and biosimilar availability, can enhance the affordability of anticancer medicines for payers and patients.
• The positive impact of competition is currently limited due to the restricted availability of generic and biosimilar options for a significant number of anticancer drugs.