Introduction
Desoximetasone, a potent topical corticosteroid, is widely used for the treatment of various skin conditions. The product with the NDC code 51672-1261 is a gel formulation supplied by Taro Pharmaceuticals U.S.A., Inc. Here, we will delve into the market analysis and price projections for this specific drug.
Market Overview
The pharmaceutical market, particularly for topical corticosteroids like desoximetasone, is influenced by several factors including regulatory changes, competition, and economic trends.
Generic Drug Market
The generic drug industry, which includes desoximetasone, is expected to experience mid-single-digit percent annual price erosion. However, there is also a forecast of modest revenue growth, marking an improvement from recent years[3].
Specialty Pharmaceuticals
While desoximetasone is not classified as a specialty pharmaceutical, the overall pharmaceutical market is seeing significant growth driven by specialty drugs. This segment, which includes treatments for high-cost, complex, or chronic conditions, is projected to see a 4.18% price increase in 2024, driven by the approval of novel specialty drugs[2].
Price Trends
Historical Pricing
To understand the price trends of desoximetasone gel (NDC: 51672-1261), it is crucial to look at historical data. However, specific historical price data for this NDC is not readily available in the provided sources. Generally, prices for generic drugs like desoximetasone can fluctuate based on market demand, competition, and manufacturing costs.
Current Pricing Methodology
The pricing of pharmaceuticals is often determined by the Wholesale Acquisition Cost (WAC), which can vary over time. For instance, a significant price increase of 15% or more in any 12-month period or a 50% cumulative increase over three years can trigger a review[4].
Projected Price Changes
Generic Drug Price Erosion
Given the commodity-like nature of the generic drug industry, desoximetasone is likely to experience some level of price erosion. This is consistent with the expectation of mid-single-digit percent annual price erosion for generic drugs[3].
Market Competition
The presence of multiple suppliers and formulations (cream and gel) of desoximetasone can lead to competitive pricing. This competition may help stabilize or slightly reduce prices over time.
Regulatory and Economic Factors
Regulatory changes, such as increased FDA inspections of foreign manufacturing facilities and potential price-fixing litigation, can impact the pricing of generic drugs. However, these factors are more likely to affect the overall stability of the supply chain rather than causing significant price hikes[3].
Impact of Economic Trends
Drug Price Inflation
The overall pharmaceutical market is projected to see a 3.8% drug price inflation in 2024, driven largely by specialty pharmaceuticals. While this trend may not directly impact the pricing of desoximetasone, it reflects broader market pressures that could influence pricing decisions[2].
Revenue Growth
The modest revenue growth expected in the generic drug industry suggests that while prices may erode, the overall market size and demand for drugs like desoximetasone could remain stable or grow slightly[3].
Industry Expert Insights
"Managing pharmacy expenditures and strengthening the supply chain is more important than ever," notes Carina Dolan, associate vice president at Vizient. This emphasis on cost management and supply chain stability underscores the need for predictable pricing in the pharmaceutical sector[2].
Conclusion
The price projections for desoximetasone gel (NDC: 51672-1261) are likely to be influenced by the broader trends in the generic drug market. Here are the key takeaways:
- Price Erosion: Expect mid-single-digit percent annual price erosion due to the commodity-like nature of the generic drug industry.
- Market Competition: Competitive pricing among multiple suppliers and formulations will help stabilize prices.
- Regulatory Factors: Potential regulatory changes and litigation may impact the supply chain but are unlikely to cause significant price increases.
- Economic Trends: The overall pharmaceutical market inflation and revenue growth trends will have a minimal direct impact on desoximetasone pricing.
Key Takeaways
- Desoximetasone gel prices are expected to experience mid-single-digit percent annual erosion.
- Market competition will help maintain stable prices.
- Regulatory and economic factors will have a minimal direct impact on pricing.
- The overall pharmaceutical market trends suggest stable revenue growth for generic drugs.
FAQs
Q: What is the current market trend for generic drugs like desoximetasone?
A: The current trend for generic drugs is mid-single-digit percent annual price erosion along with modest revenue growth.
Q: How does competition affect the pricing of desoximetasone?
A: Competition among multiple suppliers and formulations helps stabilize and potentially reduce prices.
Q: What regulatory factors could impact the pricing of desoximetasone?
A: Regulatory changes such as increased FDA inspections and potential price-fixing litigation could impact the supply chain but are unlikely to cause significant price hikes.
Q: How does the overall pharmaceutical market inflation affect desoximetasone pricing?
A: The overall pharmaceutical market inflation, driven by specialty drugs, has a minimal direct impact on the pricing of generic drugs like desoximetasone.
Q: What is the projected revenue growth for the generic drug industry in 2024?
A: The generic drug industry is expected to see modest revenue growth in 2024, marking an improvement from recent trends.
Sources
- FDA.report - NDC 51672-4022 Oral Tablet Acetazolamide Drug
- Vizient Inc. - Vizient Projects 3.8% Drug Price Increase Driven by Specialty Pharmaceuticals
- S&P Global - Pharmaceutical Industry 2024 Credit Outlook Is Stable As Revenue Growth Mitigates Pressures
- Washington State Health Care Authority - Methodology for Identifying Drugs for Affordability Review
- DailyMed - Label: DESOXIMETASONE cream DESOXIMETASONE gel
