Market Analysis and Price Projections for the Drug NDC: 16714-0866
Introduction
The drug identified by the National Drug Code (NDC) 16714-0866 is a prescription medication, specifically a combination of dextroamphetamine and amphetamine salts, commonly used to treat attention deficit hyperactivity disorder (ADHD) and certain cases of narcolepsy. Here, we will delve into the market analysis and price projections for this drug.
Drug Overview
The medication with NDC 16714-0866 is a single-entity amphetamine product that combines the neutral sulfate salts of dextroamphetamine and amphetamine, along with the dextro isomer of amphetamine saccharate. It is classified as a Schedule CII controlled substance due to its potential for abuse and dependence[1].
Market Size and Growth
The overall market for prescription drugs, including those like the one with NDC 16714-0866, is significant and growing. The U.S. prescription drug market is influenced by various factors, including the high cost of prescription drugs, which has led to increased scrutiny and regulatory measures.
Prescription Drug Market Trends
The U.S. prescription drug market is expected to continue growing, driven by factors such as an aging population, increased prevalence of chronic diseases, and advancements in pharmaceutical technology. However, the market is also subject to regulatory pressures aimed at increasing transparency and controlling costs[5].
Pricing Mechanisms
National Drug Code (NDC) and Pricing
The NDC is a unique identifier for drugs in the U.S., and it plays a crucial role in pricing and reimbursement. For drugs like the one with NDC 16714-0866, the pricing is influenced by the Average Manufacturer Price (AMP) and the Unit Rebate Amount (URA), which are used to calculate the 340B ceiling price for covered outpatient drugs[2].
Ceiling Price Calculation
The 340B ceiling price is calculated by subtracting the URA from the AMP for the smallest unit of measure. This pricing mechanism ensures that covered entities, such as hospitals and clinics participating in the 340B program, pay no more than the statutory ceiling price for the drug[2].
Price Projections
Current Pricing
As of the latest data, the exact current price for the drug with NDC 16714-0866 is not provided in the sources. However, it is subject to the pricing mechanisms governed by the Medicaid Drug Rebate Program and other regulatory frameworks.
Future Price Trends
Given the broader trends in the prescription drug market, prices for drugs like this one are likely to be influenced by several factors:
- Regulatory Measures: Efforts to increase transparency and control costs, such as those in Oregon and at the federal level, may impact pricing. For example, the Prescription Drug Price Transparency Act and the Inflation Reduction Act of 2022 aim to address high drug prices through various mechanisms, including upper payment limits and price negotiations[5].
- Market Competition: The presence of generic alternatives and the overall competitive landscape in the ADHD and narcolepsy treatment markets can also influence pricing.
- Economic Factors: Economic conditions, including inflation and changes in healthcare spending, will also play a role in price projections.
Statistical Insights
Historical data shows that prescription drug prices can fluctuate significantly. For instance, the median price increase for generic drugs was 19.9% in 2022, while brand name drugs saw a median increase of 13.4%[5]. Such trends suggest that prices for specific drugs can rise substantially over time.
Industry Expert Insights
Industry experts often highlight the complexity of drug pricing, which is influenced by a multitude of factors including manufacturing costs, market demand, regulatory requirements, and negotiations with pharmacy benefit managers (PBMs)[5].
Quote from Industry Expert
"Drug pricing is a multifaceted issue, influenced by interactions and financial negotiations between various entities in the pharmaceutical supply chain. Transparency and regulatory oversight are crucial in understanding and addressing the high costs of prescription drugs."[5]
Illustrative Statistics
- The U.S. prescription drug market is projected to grow from USD 42.80 billion in 2024 to USD 53 billion by 2029, at a CAGR of 4.40%[3].
- The largest price increase reported for a generic drug in 2022 was a 2,527% increase for a generic version of naproxen[5].
Key Factors Influencing Price
Regulatory Oversight
Regulatory measures, such as those implemented by the FDA and state-level initiatives, play a significant role in drug pricing. For example, the FDA's National Drug Code Directory ensures that all drugs, including those with NDC 16714-0866, are properly identified and reported[4].
Pharmaceutical Supply Chain
The pharmaceutical supply chain, including manufacturers, PBMs, and pharmacies, significantly influences drug prices. Rebates, discounts, and other incentives negotiated by PBMs can substantially affect the final cost of the drug to consumers[5].
Market Demand
Market demand, driven by the prevalence of conditions like ADHD and narcolepsy, also impacts pricing. As the population ages and the prevalence of these conditions increases, demand for effective treatments like the drug with NDC 16714-0866 is likely to rise.
Conclusion
The market analysis and price projections for the drug with NDC 16714-0866 are complex and multifaceted. Here are some key takeaways:
Key Takeaways
- Regulatory Influence: Regulatory measures and transparency initiatives will continue to shape the pricing landscape.
- Market Growth: The overall prescription drug market is expected to grow, driven by demographic and technological factors.
- Pricing Mechanisms: The 340B ceiling price and other regulatory pricing mechanisms will continue to influence the cost of the drug.
- Industry Dynamics: The pharmaceutical supply chain, including negotiations with PBMs and market demand, will remain crucial in determining drug prices.
FAQs
Q: What is the NDC code, and how is it used in drug pricing?
A: The NDC code is a unique identifier for drugs in the U.S., used to track and price medications. It is essential for calculating the 340B ceiling price and other pricing mechanisms.
Q: How do regulatory measures impact drug pricing?
A: Regulatory measures, such as the Prescription Drug Price Transparency Act and the Inflation Reduction Act, aim to increase transparency and control costs by setting upper payment limits and negotiating prices.
Q: What role do pharmacy benefit managers (PBMs) play in drug pricing?
A: PBMs negotiate rebates and discounts with manufacturers, which significantly influence the final cost of the drug to consumers.
Q: How is the 340B ceiling price calculated?
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.
Q: What are the projected growth trends for the U.S. prescription drug market?
A: The U.S. prescription drug market is expected to grow from USD 42.80 billion in 2024 to USD 53 billion by 2029, at a CAGR of 4.40%.
Sources
- DailyMed: DEXTROAMPHETAMINE SACCHARATE, AMPHETAMINE ASPARTATE, DEXTROAMPHETAMINE SULFATE AND AMPHETAMINE SULFATE tablet.
- HRSA: NDC Product Details - Log into 340B OPAIS.
- GlobeNewswire: U.S. OTC Drugs Market Forecast Report 2024-2029.
- FDA: National Drug Code Directory.
- Oregon Health Authority: Prescription Drug Price Transparency Results and Recommendations.
