Introduction to Desoximetasone
Desoximetasone, identified by the National Drug Code (NDC) 51672-1352, is a topical ointment classified as a human prescription drug. It is manufactured and distributed by Taro Pharmaceuticals U.S.A., Inc.[1].
Market Context
The pharmaceutical industry is undergoing significant changes that impact the pricing and market dynamics of drugs like Desoximetasone.
Overall Pharmaceutical Market Trends
In 2024, the pharmaceutical industry is expected to experience a stable credit outlook, driven by revenue growth that mitigates various pressures. However, the generic drug industry, which includes topical corticosteroids like Desoximetasone, is anticipated to face mid-single-digit percent annual price erosion. Despite this, there is a forecast of modest revenue growth, an improvement from recent trends[3].
Drug Price Inflation
Vizient, Inc. has projected a 3.81% overall drug price inflation rate for 2025. This projection is influenced by factors such as expanding indications for previously approved medications and the introduction of high-cost cell and gene therapies. While this inflation rate is not specifically tailored to generic or topical drugs, it indicates a broader trend of increasing costs in the pharmaceutical sector[2].
Pricing Factors for Desoximetasone
Generic Drug Market Dynamics
Desoximetasone, as a generic topical corticosteroid, is part of a market segment that is subject to price erosion. The generic drug industry is characterized by intense competition, which often leads to lower prices. However, the stability in revenue growth for generics suggests that while prices may decrease, the overall market demand and revenue can still be sustained[3].
Regulatory and Litigation Risks
The generic drug industry is also facing potential risks such as price-fixing litigation and increased FDA inspections of foreign manufacturing facilities. These factors could impact the pricing and availability of Desoximetasone, although the direct impact would depend on the specific circumstances affecting Taro Pharmaceuticals U.S.A., Inc.[3].
Historical Pricing and Market Performance
Historical Data
Desoximetasone has been on the market since January 17, 1985. Over the years, its pricing has likely been influenced by the broader trends in the generic drug market. Given the nature of generic drugs, prices tend to decrease over time due to competition and market forces[1].
Current Market Performance
The current market performance of Desoximetasone would be influenced by its classification as a corticosteroid and its generic status. Generic drugs typically see a reduction in price as more manufacturers enter the market, which could affect the pricing strategy for Desoximetasone.
Projections for Future Pricing
Short-Term Projections
For the short term, the price of Desoximetasone is likely to follow the general trend of mid-single-digit percent annual price erosion seen in the generic drug industry. This means that the price could decrease by around 3-5% annually, depending on market conditions and competition[3].
Long-Term Projections
In the long term, the stability in revenue growth for generics and the increasing demand for topical corticosteroids could mitigate the impact of price erosion. However, the introduction of new drugs and changes in regulatory policies could also influence the pricing dynamics.
Impact of Broader Pharmaceutical Trends
Biosimilars and Specialty Drugs
While Desoximetasone is not a biosimilar or a specialty drug, the overall pharmaceutical market trends can still impact its pricing. The growth in biosimilars and specialty drugs can divert some of the market attention and resources, potentially affecting the pricing strategies for generic drugs[4].
COVID-19 Pandemic Influence
The COVID-19 pandemic has had a significant impact on pharmaceutical spending, particularly in hospitals and clinics. However, for a topical ointment like Desoximetasone, the pandemic's direct impact might be less pronounced compared to drugs used in hospital settings[4].
Key Takeaways
- Market Stability: The pharmaceutical industry, including the generic drug segment, is expected to have a stable credit outlook in 2024.
- Price Erosion: Desoximetasone, as a generic drug, is likely to experience mid-single-digit percent annual price erosion.
- Regulatory Risks: Potential risks include price-fixing litigation and increased FDA inspections.
- Market Demand: The demand for topical corticosteroids can help sustain revenue despite price decreases.
- Broader Trends: The overall pharmaceutical market trends, including the growth in biosimilars and specialty drugs, can influence the pricing dynamics.
FAQs
1. What is Desoximetasone used for?
Desoximetasone is a topical ointment used to treat various skin conditions, including eczema, psoriasis, and dermatitis, due to its corticosteroid properties.
2. Who manufactures Desoximetasone?
Desoximetasone is manufactured and distributed by Taro Pharmaceuticals U.S.A., Inc.[1].
3. What is the expected price inflation rate for pharmaceuticals in 2025?
The overall drug price inflation rate for 2025 is projected to be 3.81% according to Vizient, Inc.[2].
4. How does the generic drug market impact Desoximetasone pricing?
The generic drug market, characterized by intense competition, leads to mid-single-digit percent annual price erosion for Desoximetasone[3].
5. What are the potential risks affecting the pricing of Desoximetasone?
Potential risks include price-fixing litigation and increased FDA inspections of foreign manufacturing facilities[3].
Sources
- FDA Report: NDC 51672-1352 Topical Ointment Desoximetasone Drug Codes.
- Vizient Inc.: Vizient projects drug price inflation at 3.81%.
- S&P Global: Pharmaceutical Industry 2024 Credit Outlook Is Stable As Revenue Growth Mitigates Pressures.
- PubMed: National trends in prescription drug expenditures and projections for 2022.
