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Oral Targeted Anticancer Medications: Use and Spending by Evidence and Magnitude of Clinical Benefit, 2016-2021
Mahnum Shahzad1,2, Rebecca Costa2, Stephanie Argetsinger2
1Department of Population Medicine, Harvard Medical School, Boston, MA.
Purpose:
An increasing number of oral targeted anticancer medications (OTAMs) are approved with uncertain evidence of clinical benefits, marketed at increasing prices, and subject to insurance coverage mandates. We determined how use of and spending on OTAMs varied by evidence and magnitude of clinical benefit.
Methods:
Using claims data between 2016 and 2021 from a large, national insurer, we assessed volumes of use and spending on OTAMs approved by the (US) Food and Drug Administration (FDA) between 2010 and 2021. We categorized drug use by evidence of overall survival (OS) and progression-free survival benefits for each FDA-approved indication using FDA-approved drug labels. We assessed how use in terms of days supplied, spending, and patients exposed was related to the level of evidence available for specific drug indications.
Results:
Use of OTAMs increased from 50.7 patient-days supplied per 1,000 enrolled patients in 2016 to 120.4 patient-days supplied in 2020 (last full year of data). Approximately half of the dispensings (46.8% in 2016 and 55.6% in 2021) were for patients with indications for which the drugs had label-documented evidence of OS benefit at the time of dispensing. Spending on OTAMs increased from $394 million US dollars (USD) in 2016 to nearly $1 billion USD in 2020. Spending for indications with evidence of OS benefit fluctuated between 41.7% and 47.1% of total spending across all OTAM dispensings. Spending on off-label use was consistently 11%-12% of all OTAM spending annually.
Conclusion:
Between 2016 and 2021, the largest shares of OTAM dispensings and spending were for indications with documented evidence of OS benefits. Nevertheless, significant spending and use were observed for drugs without confirmed OS benefit.
Insights
Spending on oral targeted anticancer medications (OTAMs) increased significantly from 2016-2021. While most spending was for drugs with proven survival benefits, substantial use and costs were for those without confirmed overall survival (OS) benefits.
Area of Science:
- Oncology
- Pharmacoeconomics
- Health Services Research
Background:
- Oral targeted anticancer medications (OTAMs) are increasingly approved with limited evidence of clinical benefit.
- These drugs are often marketed at high prices, leading to significant healthcare expenditures.
- Insurance coverage mandates further complicate the use and accessibility of OTAMs.
Purpose of the Study:
- To analyze the trends in utilization and spending of OTAMs.
- To determine how the use and cost of OTAMs correlate with the level of clinical evidence supporting their efficacy.
- To assess the association between drug indications, evidence of overall survival (OS) benefit, and associated healthcare spending.
Main Methods:
- Utilized national health insurance claims data from 2016 to 2021.
- Assessed the volume of use (patient-days supplied) and spending on OTAMs approved between 2010 and 2021.
- Categorized drug use based on FDA-documented evidence of OS and progression-free survival benefits for each approved indication.
Main Results:
- OTAM use increased from 50.7 to 120.4 patient-days per 1,000 enrolled patients between 2016 and 2020.
- Approximately 47-56% of dispensings were for indications with documented OS benefit.
- Total spending on OTAMs rose from $394 million to nearly $1 billion USD between 2016 and 2020, with 11-12% spent on off-label uses.
Conclusions:
- The majority of OTAM dispensings and spending between 2016 and 2021 were for indications with documented OS benefits.
- A significant portion of OTAM use and expenditure was associated with drugs lacking confirmed OS benefits.
- Further research is needed to evaluate the cost-effectiveness and clinical value of OTAMs with uncertain evidence.
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