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Edward G. Rogoff, Hany S. Guirguis, Richard A. Lipton, Stephanie V. Seremetis, Donna M. DiMichele, George M. Agnew, Margaret Karpatkin, Robert J. Barish, Robert L. Jones, Celso Bianco, Barbara D. Knothe, Myung-Soo Lee
The Upward Spiral of Drug Costs: A Time Series Analysis of Drugs Used in the Treatment of Hemophilia
Background: Hemophilia is an expensive disease because its treatment is heavily dependent on costly clotting factor drugs. Over the last nine years, a consortium of three Comprehensive Hemophilia Treatment Centers and other hospitals, which purchased clotting factors for their patients, has seen treatment costs escalate on average 17% annually. Currently, new, even more expensive drugs are entering the market. Methods: This study analyzes 3, 244 purchases that were made over a nine-year period totaling nearly 500 million units of clotting factor, representing every product on the market. Purchases were made both apart from and under the Federal Public Health Service (PHS) discount pricing rules. Findings: The main cause of the increases was the move to newer, more expensive products. The average price of existing products increased less than 2% per year, but new products were priced, on average, 47% higher than existing products. Overall consumption increased by an average of 5% per year, likely reflecting prophylactic treatment modalities that require greater amounts of clotting factor. Government pricing programs, such as the PHS program, were ineffective or counterproductive at reducing costs. There is a notable absence of competition in this market, with a few dominant companies having a functional monopoly in the largest segments of the market. Prices of older products are not lowered, even when new products are brought to market. A few products that serve small patient groups have had their prices increased substantially.
Thrombosis and Haemostasis, Schattauer
Print ISSN: 0340-6245
Volume: 88, 01/2002
Pages: 545 - 553