Market Analysis and Price Projections for the Drug NDC: 83980-0002
Introduction
The drug identified by the National Drug Code (NDC) 83980-0002 is Furosemide, a diuretic medication manufactured by Ipca Laboratories Limited. To analyze the market and project prices for this drug, we need to consider several key factors, including market share, pricing mechanisms, industry trends, and regulatory influences.
Market Share and Labeler Information
Furosemide, with the NDC 83980-0002, is produced by Ipca Laboratories Limited, an Indian pharmaceutical company. The labeler code segment of the NDC (83980) identifies Ipca Laboratories as the manufacturer and distributor of this drug[1][4].
Pricing Mechanisms
Medicare's Influence
Medicare's market share can significantly impact drug pricing. For drugs like Furosemide, which may be covered under Medicare Part D, the program's pricing mechanisms can influence the overall market. If Medicare has a substantial market share for this drug, it could reduce competitive pricing pressures, allowing the manufacturer to set prices with less fear of significant sales declines[2].
Negotiated Prices
The Centers for Medicare & Medicaid Services (CMS) has initiated a Drug Price Negotiation Program under the Inflation Reduction Act. While Furosemide may not be among the initial drugs selected for negotiation, the program's impact on the broader pharmaceutical market could indirectly affect pricing strategies for all high-expenditure drugs, including generics like Furosemide[2].
Industry Trends
Generic Drug Sector
Furosemide is a generic drug, and the generic drug sector is subject to mid-single-digit percent annual price erosion. However, this erosion is more pronounced in highly competitive markets with multiple generic manufacturers. For a drug like Furosemide, which has multiple manufacturers but is not as highly competitive as some other generics, the price erosion might be less severe[2].
Market Growth and Demand
The demand for diuretics like Furosemide remains steady due to their widespread use in treating conditions such as edema and hypertension. This consistent demand can support stable pricing, although it may not drive significant price increases[2].
International Price Comparisons
U.S. prices for prescription drugs, including generics, are often higher than those in other high-income countries. For example, U.S. prices for brand-name drugs are 422% of prices in comparison countries, while generic drugs are priced at about 67% of those in other countries. However, since Furosemide is a generic, its pricing is more aligned with international standards, but still higher than in many other countries[3].
Price Projections
Factors Influencing Pricing
- Medicare's Market Share: If Medicare has a significant market share, prices may be less competitive.
- Negotiated Prices: CMS negotiations could set pricing benchmarks, although this may not directly apply to Furosemide unless it is selected for negotiation.
- Industry Trends: Generic price erosion is expected, but Furosemide's stable demand and less competitive market may mitigate this effect.
- Market Growth: The steady demand for diuretics supports stable pricing.
Price Erosion
Given the generic nature of Furosemide, some level of price erosion is expected. However, this erosion is likely to be modest, especially if Ipca Laboratories Limited maintains a significant market share and there is no sudden influx of new generic competitors.
Regulatory Influences
Regulatory changes, such as those under the Inflation Reduction Act, could impact pricing strategies. However, since Furosemide is a generic drug, it is less likely to be directly affected by these negotiations unless it becomes part of a broader pricing reform initiative.
Key Takeaways
- Stable Demand: The consistent demand for Furosemide supports stable pricing.
- Generic Price Erosion: Modest price erosion is expected due to the generic nature of the drug.
- Regulatory Impact: Indirect influences from CMS negotiations and other regulatory changes could affect pricing strategies.
- International Pricing: U.S. prices for generics like Furosemide are higher than in many other countries but more aligned than those for brand-name drugs.
Price Projections Summary
Given the factors above, here are some key points for price projections:
- Short-Term: Prices are likely to remain stable with modest erosion due to generic competition.
- Long-Term: The impact of regulatory changes and industry trends could lead to slightly lower prices, but the demand for Furosemide will continue to support its market presence.
"U.S. prices for brand-name drugs were 422 percent of prices in comparison countries, while U.S. unbranded generics... were on average cheaper at 67 percent of prices in comparison countries"[3].
FAQs
What is the NDC 83980-0002?
The NDC 83980-0002 is the unique identifier for Furosemide, a diuretic medication manufactured by Ipca Laboratories Limited.
How does Medicare influence the pricing of Furosemide?
Medicare's significant market share can reduce competitive pricing pressures, allowing the manufacturer to set prices with less fear of significant sales declines.
What is the expected price trend for Furosemide?
The price of Furosemide is expected to remain stable with modest erosion due to generic competition.
How do international price comparisons affect Furosemide pricing?
U.S. prices for generics like Furosemide are higher than in many other countries but more aligned than those for brand-name drugs.
What regulatory changes could impact Furosemide pricing?
Regulatory changes under the Inflation Reduction Act, such as CMS negotiations, could indirectly affect pricing strategies for Furosemide.
Sources
- Find-A-Code: Ipca Laboratories Limited - List of Drugs - NDC Labeler/Manufacturer
- Drug Patent Watch: Latest pharmaceutical drug prices and trends for NDC 00002-8147
- ASPE: International Prescription Drug Price Comparisons: Estimates Using IQVIA MIDAS Data
- AAPC: NDC Code Lookup - CPT/HCPCS Cross-Reference
- Oregon Department of Consumer and Business Services: Prescription Drug Price Transparency Results and Recommendations
