Overview of Propofol
Propofol, marketed under the brand name Diprivan, is a widely used anesthetic agent. It is available in various formulations, including a single patient use glass fliptop vial with a concentration of 10 mg/mL[1].
Current Market Dynamics
Supply and Availability
Propofol is supplied by several manufacturers, including Pfizer, and is available in different packaging configurations. For instance, the NDC 00409-6010-25 corresponds to a single patient use glass fliptop vial containing 200 mg/20 mL of propofol. This ensures a steady supply to meet the demands of healthcare providers[1].
Competition and Market Structure
The market for propofol is relatively concentrated, with a few major players. Historical antitrust analyses have highlighted the importance of maintaining competition in this market to prevent price increases. For example, the Federal Trade Commission (FTC) has intervened in acquisitions to ensure that competition is preserved, such as requiring the divestiture of propofol assets to prevent monopolistic practices[4].
Price Trends and Projections
General Drug Price Inflation
The pharmaceutical market is experiencing a general trend of price inflation. According to Vizient's Pharmacy Market Outlook, the overall drug price inflation rate for 2025 is projected to be around 3.81%. This inflation is driven by various factors, including the expanding indications of previously approved medications and the introduction of high-cost therapies[2].
Specific Price Projections for Propofol
While the general trend suggests a moderate increase in drug prices, the specific price projection for propofol is less clear. However, several factors can influence its pricing:
- Competition: The presence of multiple suppliers, such as Baxter and AstraZeneca, helps maintain competitive pricing. Any consolidation in the market could lead to higher prices[4].
- Regulatory Environment: Transparency programs and regulatory oversight can impact pricing. For instance, the Prescription Drug Price Transparency Program has shown that competition in the generics market can significantly reduce prices, although this may not directly apply to branded or specialty versions of propofol[3].
Historical Price Stability
Propofol, being a well-established drug, tends to have more stable pricing compared to newer or specialty medications. However, any significant changes in market dynamics, such as mergers or acquisitions among suppliers, could alter this stability.
Impact of Specialty and Generic Markets
Specialty Pharmaceuticals
While propofol is not classified as a specialty pharmaceutical, the overall trend in the pharmaceutical market is influenced by the increasing costs of specialty drugs. The projected 4.18% price increase for specialty medications can indirectly affect the pricing strategies of other drugs, including propofol, as healthcare providers and payers manage their budgets[5].
Generic Market Competition
The generic market can play a crucial role in pricing. For drugs like propofol, generic versions can help keep prices in check. However, the complexity and cost of manufacturing injectable anesthetics may limit the number of generic entrants, potentially affecting price competition[4].
Key Factors Influencing Price
Expanding Indications and Utilization
Unlike some other medications, propofol's primary use is well-established and not subject to the same level of expanding indications that drive up costs for other drugs. This stability in usage patterns can help maintain relatively stable pricing.
Regulatory and Transparency Efforts
Efforts to increase transparency in drug pricing can help in understanding the reasons behind price changes. However, the quality of information submitted by manufacturers varies, making it challenging to determine the exact reasons for price increases or decreases[3].
Conclusion
The price projections for propofol (NDC: 00409-6010) are influenced by a combination of market dynamics, competition, and regulatory factors. Here are the key takeaways:
- Moderate Price Inflation: General drug price inflation trends suggest a moderate increase, but propofol's pricing is likely to remain relatively stable due to its established market presence.
- Competition: The presence of multiple suppliers helps maintain competitive pricing.
- Regulatory Oversight: Transparency programs and regulatory actions can impact pricing, although their direct impact on propofol may be limited.
- Market Stability: Propofol’s well-established use and stable market position contribute to its relatively stable pricing.
Key Takeaways
- Propofol is a widely used anesthetic agent with a stable market presence.
- The general trend of drug price inflation is around 3.81%, but propofol’s pricing is expected to be more stable.
- Competition among suppliers and regulatory oversight are crucial in maintaining competitive pricing.
- Transparency programs can help in understanding price changes, but their impact on propofol may be indirect.
FAQs
Q: What is the current concentration of propofol available in the market?
A: Propofol is available in a concentration of 10 mg/mL in various packaging configurations[1].
Q: How does the market structure affect the pricing of propofol?
A: The market for propofol is relatively concentrated, and maintaining competition among suppliers is crucial to prevent price increases[4].
Q: What is the projected drug price inflation rate for 2025?
A: The overall drug price inflation rate for 2025 is projected to be around 3.81% according to Vizient's Pharmacy Market Outlook[2].
Q: How do transparency programs impact drug pricing?
A: Transparency programs help in understanding the reasons behind price changes, although the quality of information submitted by manufacturers can vary[3].
Q: What role do generic versions play in the pricing of propofol?
A: Generic versions can help keep prices in check, but the complexity and cost of manufacturing injectable anesthetics may limit the number of generic entrants[4].
Sources
- Pfizer Hospital US, "Propofol Injectable Emulsion, USP (contains Benzyl Alcohol)"
- Vizient Inc., "Vizient projects drug price inflation at 3.81%"
- Oregon Department of Consumer and Business Services, "Prescription Drug Price Transparency Program results and Annual Report 2023"
- Federal Trade Commission, "Baxter International Inc, - Analysis"
- Vizient Inc., "Vizient Projects 3.8% Drug Price Increase Driven by Specialty Pharmaceuticals"
