Market Analysis and Price Projections for the Drug NDC: 51407-0734
Understanding the NDC System
To analyze the market and project prices for a specific drug identified by its National Drug Code (NDC), it is crucial to understand the NDC system. The NDC is a universal product identifier for drugs, consisting of a 10-digit, three-segment number that identifies the labeler, product, and trade package size[5].
Identifying the Drug
The NDC 51407-0734 is associated with a specific drug product. To identify this drug, we need to look at the labeler code, product code, and package code.
- Labeler Code: The first segment, "51407," indicates the labeler, which in this case is Golden State Medical Supply, Inc.[3].
- Product Code: The second segment identifies the specific strength, dosage form, and formulation of the drug.
- Package Code: The third segment identifies the package size and type.
Drug Details
For the NDC 51407-0734, the specific drug details are not provided in the sources, but we can infer that it is one of the many drugs manufactured or distributed by Golden State Medical Supply, Inc. To get precise details, one would need to refer to the FDA's NDC Directory or the manufacturer's product list[3][5].
Market Trends in the Pharmaceutical Industry
Global Pricing Disparities
The pharmaceutical market is characterized by significant pricing disparities between the U.S. and other regions. For instance, in 2022, the average price per unit in the U.S. was 5.5 times higher than in the OECD (excluding the U.S.) and 7.7 times higher than in the rest of the world (excluding the U.S.)[2].
Sales Revenue Trends
- Retail vs. Non-Retail Markets: U.S. sales revenues grew by 22% in retail markets and 26% in non-retail markets between 2017 and 2022. In contrast, the rest of the world and OECD (excluding the U.S.) saw declines in retail markets but growth in non-retail markets[2].
- Small Molecule Drugs vs. Biologics: U.S. sales revenues for small molecule drugs grew by 4%, while biologic products saw a significant 61% growth. This indicates a shift towards more expensive and advanced drug compounds[2].
Price Increases
Between 2017 and 2022, the U.S. experienced an average price increase of 14% for drugs, whereas prices in the rest of the world and OECD (excluding the U.S.) decreased by 9% and 7%, respectively[2].
Price Projections for the Drug NDC: 51407-0734
General Trends
Given the overall trend of increasing prices in the U.S. pharmaceutical market, it is likely that the price of the drug associated with NDC 51407-0734 will also increase.
Specific Factors
- Drug Type: If the drug is a biologic, it is more likely to see significant price increases due to the higher growth rates observed in biologic products.
- Market Demand: High demand for the drug, especially if it is for a chronic condition or a rare disease, can drive up prices.
- Regulatory Environment: Changes in regulatory policies or the introduction of new drugs in the same therapeutic class could impact pricing.
Potential Price Increase
Based on the average price increase of 14% between 2017 and 2022, it is reasonable to project a similar or slightly higher increase for the drug associated with NDC 51407-0734, especially if it falls into the category of biologics or high-demand drugs.
Reporting and Compliance
For drugs like the one associated with NDC 51407-0734, reporting entities must ensure compliance with the Open Payments system. This includes validating the drug name and NDC against the CMS-approved dataset to ensure accurate reporting of payments and other transfers of value[1].
Excluded Information
It is important to note that some drugs may not be included in the NDC Directory or the Drug Name and NDC Reference Data, such as new drugs registered after December 31, 2023, or drugs that do not have a marketed name. Reporting entities must still report payments associated with these drugs but must follow specific guidelines for validation[1].
Conclusion
The market analysis and price projections for the drug associated with NDC 51407-0734 are influenced by broader trends in the pharmaceutical industry, including significant price disparities between the U.S. and other regions, and the general increase in prices for drugs, especially biologics.
Key Takeaways
- Global Pricing Disparities: The U.S. has significantly higher drug prices compared to other regions.
- Sales Revenue Trends: U.S. sales revenues are growing, especially for biologic products.
- Price Increases: The U.S. has seen a 14% average price increase between 2017 and 2022.
- Compliance: Reporting entities must validate drug names and NDCs against CMS-approved datasets.
- Drug Type: Biologics are likely to see higher price increases.
FAQs
What is the NDC system?
The NDC system is a universal product identifier for drugs, consisting of a 10-digit, three-segment number that identifies the labeler, product, and trade package size.
Why are drug prices higher in the U.S. compared to other regions?
Drug prices in the U.S. are higher due to a combination of factors including higher prices for the same drugs and a drug mix that skews towards more expensive drug compounds.
How do I validate the drug name and NDC for reporting purposes?
To validate the drug name and NDC, reporting entities must use the CMS-approved dataset as specified in the Open Payments system guidelines.
What types of drugs are excluded from the NDC Directory?
Drugs excluded include new drugs registered after December 31, 2023, blood products, drugs not in final marketed form, and drugs without a marketed name.
How do market trends affect price projections for specific drugs?
Market trends such as the growth in biologic products and overall price increases in the U.S. market can significantly impact price projections for specific drugs.
Sources
- Drug Name and National Drug Code (NDC) Reference Data Instructions - CMS
- ISSUE BRIEF: International Market Size and Prices - ASPE
- Golden State Medical Supply, Inc. - List of Drugs - NDC Labeler - FindACode
- National Drug Code Directory - HealthData.gov
- National Drug Code Database Background Information - FDA
