Market Analysis and Price Projections for the Drug NDC: 61874-0100
Understanding the NDC Code
The National Drug Code (NDC) is a unique, three-segment number that identifies drug products in the United States. The NDC 61874-0100 can be broken down into three parts: the labeler code, the product code, and the package code. For example, in the NDC 61874-0100, "61874" could be the labeler code, "01" the product code, and "00" the package code[1][4].
Identifying the Drug
To analyze the market and price projections for the drug with NDC 61874-0100, it is crucial to identify the specific drug product. However, without specific details from the FDA's National Drug Code Directory or other databases, we can't directly identify the drug from the NDC alone. Typically, you would look up the NDC in the FDA's NDC Directory to find the drug's name, strength, dosage form, and other relevant information[1][4].
Market Analysis
Drug Categories and Usage
If the drug falls under categories like prescription drugs, OTC drugs, or insulin products, it would be listed in the NDC Directory. Understanding the therapeutic category (e.g., cardiovascular, diabetes, cancer) helps in assessing market demand and competition. For instance, drugs like Januvia and Farxiga, which are used for diabetes and other conditions, have seen significant usage and cost savings under the Medicare Drug Price Negotiation Program[2][5].
Price Trends
Recent trends show that many prescription drugs have experienced significant price increases over the years. For example, between 2018 and 2023, nine of the ten drugs selected for the first cycle of Medicare price negotiations saw list price increases ranging from 20% to 55%[5].
Impact of Medicare Price Negotiation
The Medicare Drug Price Negotiation Program, part of the Inflation Reduction Act, aims to lower prescription drug costs for Medicare beneficiaries. If the drug with NDC 61874-0100 is selected for this program, its prices could be significantly reduced. For example, drugs like Enbrel and Stelara have seen negotiated price reductions of 67% and 66%, respectively[2][3].
Price Projections
Negotiated Prices
If the drug is selected for the Medicare Drug Price Negotiation Program, the negotiated prices would be significantly lower than the current list prices. These prices are expected to save millions of dollars for Medicare beneficiaries. For instance, the negotiated price for Januvia is expected to be $113, down from $527, a reduction of 79%[2][3].
Annual Adjustments
The negotiated prices will be adjusted annually based on the Consumer Price Index for all urban consumers (CPI-U). This means that while the initial negotiated price will be lower, it will increase slightly each year to account for inflation[3].
Market Impact
Lower prices due to negotiations can increase the drug's market share as it becomes more affordable for patients. This can also impact the overall market dynamics, potentially leading to increased competition among similar drugs.
Key Considerations
Regulatory Compliance
The drug must comply with FDA regulations and be listed in the NDC Directory to be considered for any price negotiations or market analysis. Non-compliance can result in the drug not being included in the directory until complete information is provided[1][4].
Therapeutic Alternatives
If the drug has therapeutic alternatives that are also selected for price negotiations, the negotiated prices of these alternatives could influence the pricing strategy for the drug in question[3].
Example of Similar Drugs
Januvia and Farxiga
These diabetes drugs have seen significant price reductions under the Medicare negotiation program. Januvia's negotiated price is $113, down from $527, and Farxiga's is $178.50, down from $556. These reductions highlight the potential savings and market impact for similar drugs[2].
Conclusion
The market analysis and price projections for a drug with the NDC 61874-0100 depend on several factors, including its therapeutic category, current market trends, and potential inclusion in the Medicare Drug Price Negotiation Program. Identifying the specific drug and its current market position is crucial for accurate analysis.
Key Takeaways
- NDC Code: A unique identifier for drug products, broken into labeler, product, and package codes.
- Market Trends: Many prescription drugs have seen significant price increases, but programs like Medicare price negotiations can reduce costs.
- Negotiated Prices: If selected, these prices can be significantly lower and adjusted annually for inflation.
- Regulatory Compliance: The drug must be listed in the FDA's NDC Directory and comply with regulatory requirements.
- Therapeutic Alternatives: Prices of similar drugs can influence the pricing strategy.
FAQs
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What is the National Drug Code (NDC)?
- The NDC is a unique, three-segment number that identifies drug products in the United States.
-
How are NDC codes structured?
- NDC codes are structured into three segments: the labeler code, the product code, and the package code.
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What is the Medicare Drug Price Negotiation Program?
- This program, part of the Inflation Reduction Act, aims to lower prescription drug costs for Medicare beneficiaries by negotiating prices with drug manufacturers.
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How are negotiated prices adjusted annually?
- Negotiated prices are adjusted annually based on the Consumer Price Index for all urban consumers (CPI-U).
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Why might some drugs not be included in the NDC Directory?
- Drugs may not be included if they are not prescription, OTC, or insulin products, or if the firm has not complied with listing obligations.
Sources
- FDA - National Drug Code Database Background Information
- White House - Fact Sheet: Biden-Harris Administration Announces New, Lower Prices for First Ten Drugs Selected for Medicare Price Negotiation
- CMS - Negotiated Prices for Initial Price Applicability Year 2026
- FDA - National Drug Code Directory
- ASPE - Medicare Drug Price Negotiation Program
