Understanding the NDC Code
The National Drug Code (NDC) is a unique 11-digit, 3-segment code assigned to each medication listed under Section 510 of the US Federal Food, Drug, and Cosmetic Act. For the NDC 00904-7340, this code identifies the labeler, product, and trade package of the drug[1][5].
Drug Identification
To analyze the market and price projections for the drug with NDC 00904-7340, it is crucial to identify the specific drug associated with this code. However, the provided sources do not specify the drug name directly linked to this NDC. Typically, one would refer to the FDA's National Drug Code Directory or other pharmaceutical databases to identify the drug[5].
Market Trends in the Pharmaceutical Industry
Pricing and Access
The life sciences industry is facing significant challenges related to drug pricing and access. C-suite executives identify pricing and access as the most significant issues, with nearly half expecting these factors to significantly impact their strategies in 2025[3].
Specialty Drugs
The market for specialty drugs, which often include high-cost therapies for conditions like cancer and rare diseases, is experiencing rapid growth. The expected annual growth in the specialty drug market is about 13.5% from 2022 to 2027, which will continue to raise cost pressures on hospitals and other healthcare providers[4].
Generic and Biosimilar Competition
Competition from generic drugs and biosimilars is a top trend, with 37% of respondents viewing it as a significant factor. The biopharma industry is facing a substantial loss of exclusivity due to expiring patents, which could impact the pricing and market dynamics of drugs[3].
Price Projections
General Trends
Drug prices have been increasing at a rate higher than general inflation. For example, prices for approximately 2,000 drugs increased by an average of 15.2% in the last year, following a year where prices for nearly 1,200 drugs increased by an average of 32%[4].
Median Price Increases
The median price increase for brand name drugs was 13.4% in 2022, which could serve as a benchmark for future price adjustments. This trend suggests that prices for drugs, including those with the NDC 00904-7340, may continue to rise[2].
340B Drug Pricing Program
For drugs covered under the 340B Drug Pricing Program, the ceiling price is calculated by subtracting the Unit Rebate Amount (URA) from the Average Manufacturer Price (AMP) for the smallest unit of measure. This program allows hospitals caring for underserved patients to purchase drugs at discounted prices, which can affect the overall market pricing dynamics[1][4].
Impact of External Forces
Patent Expirations
The looming patent expiration for high-revenue products is likely to drive interest in mergers and acquisitions and could influence the pricing strategies of pharmaceutical companies. This could lead to changes in the market position and pricing of drugs, including those with the NDC 00904-7340[3].
Digital Transformation and Innovation
The integration of technologies like gen AI and the increased use of data are expected to boost operational efficiencies and drive breakthrough innovations. These advancements could lead to new therapeutic solutions and potentially affect the pricing and market positioning of existing drugs[3].
Example: Price Trends for Similar Drugs
To illustrate potential price trends, consider the example of Imatinib Mesylate (NDC 00378-2245), a drug that has seen price fluctuations over recent months. The price per unit for Imatinib Mesylate has varied, with a price of $0.66780 per unit as of December 2024, down from $0.64236 in November 2024, and $0.54917 in October 2024[2].
Key Takeaways
- Pricing Trends: Drug prices are increasing at rates higher than general inflation, with significant increases in specialty and oncology drugs.
- Competition: Generic and biosimilar competition is expected to rise, potentially affecting the market dynamics of branded drugs.
- 340B Program: The 340B Drug Pricing Program offers discounted prices for certain outpatient drugs, impacting the revenue of drug companies and the cost pressures on hospitals.
- Innovation and Technology: Advances in digital transformation and innovation are expected to drive operational efficiencies and new therapeutic solutions.
- External Forces: Patent expirations and geopolitical uncertainties will continue to shape the pharmaceutical market.
FAQs
Q: What is the National Drug Code (NDC) and how is it structured?
A: The NDC is an 11-digit, 3-segment code that identifies the labeler, product, and trade package of a medication. The first segment is assigned by the FDA, the second identifies the product specifics, and the third identifies the package form and size[1][5].
Q: How are prices calculated under the 340B Drug Pricing Program?
A: The 340B ceiling price is calculated by subtracting the Unit Rebate Amount (URA) from the Average Manufacturer Price (AMP) for the smallest unit of measure[1].
Q: What are the key challenges facing the life sciences industry in 2025?
A: The key challenges include pricing and access to drugs, competition from generic and biosimilar drugs, and the impact of patent expirations[3].
Q: How is the growth in specialty drugs affecting the pharmaceutical market?
A: The growth in specialty drugs is contributing to increased hospital spending and cost pressures, with these drugs often experiencing high price increases[4].
Q: What role does digital transformation play in the pharmaceutical industry?
A: Digital transformation, including the use of gen AI and data analytics, is expected to boost operational efficiencies and drive breakthrough innovations in the pharmaceutical industry[3].
Sources
- HRSA: NDC Product Details - Log into 340B OPAIS - HRSA
- DrugPatentWatch: Latest drug prices and trends for NDC 00378-2245
- Deloitte Insights: 2025 life sciences outlook
- American Hospital Association: The 340B Drug Pricing Program
- FDA: National Drug Code Directory
