Market Analysis and Price Projections for NDC 70677-0001: Pseudoephedrine Hydrochloride
Overview of NDC 70677-0001
NDC 70677-0001 is an oral, extended-release tablet of Pseudoephedrine Hydrochloride, a common nasal decongestant. It is classified as a Human OTC (Over-The-Counter) drug and is marketed by McKesson Corporation since April 5, 2018[1].
Market Context
Pharmaceutical Industry Outlook
The pharmaceutical industry, particularly the generic drug sector, is expected to experience a mix of challenges and opportunities in 2024. There is a forecast of mid-single-digit percent annual price erosion in the generic drug industry, but this is balanced by a return to modest revenue growth[3].
Price Trends in Generic Drugs
Historical data indicates that the Wholesale Acquisition Cost (WAC) for generic drugs has generally decreased over the past few years. For instance, in 2021, the WAC for generic drugs decreased in all but one category, while brand drugs saw price increases in most categories[4].
Pricing Mechanisms
Current Pricing
As of the last available data, NDC 70677-0001 contains 120 mg of Pseudoephedrine Hydrochloride per tablet. The pricing for this drug is influenced by various market and regulatory factors, including competition from other generic and brand-name decongestants.
Regulatory Impact
The FDA and other regulatory bodies play a significant role in drug pricing. For example, FDA inspections of foreign manufacturing facilities and price-fixing litigation can impact the pricing and availability of generic drugs[3].
Price Projections
Short-Term Projections
Given the trend of decreasing WAC for generic drugs, it is likely that the price of NDC 70677-0001 will either remain stable or decrease slightly in the short term. The average percent decrease in WAC for generic drugs over the last three years has been around -49.40%, although this is more relevant to drugs with significant price adjustments rather than stable products like NDC 70677-0001[4].
Long-Term Projections
In the long term, the price of NDC 70677-0001 is expected to be influenced by broader industry trends. With the anticipated modest revenue growth in the generic drug sector, the price may stabilize or see minor adjustments. However, any significant changes in regulatory policies or market dynamics could impact these projections.
Impact of Medicare Drug Price Negotiation Program
While the Medicare Drug Price Negotiation Program primarily affects drugs covered under Medicare, it can have indirect effects on the broader pharmaceutical market. For instance, negotiated prices for similar therapeutic alternatives could influence the pricing strategy for drugs like NDC 70677-0001, especially if they are considered in subsequent negotiation cycles[2].
Competitive Landscape
The market for nasal decongestants is competitive, with multiple brand and generic options available. This competition can drive prices down as manufacturers strive to maintain market share. The presence of other pseudoephedrine-based products and alternative decongestants will continue to influence the pricing of NDC 70677-0001.
Consumer and Payer Impact
Consumer Perspective
For consumers, the stability or slight decrease in prices of generic drugs like NDC 70677-0001 is beneficial, especially in an inflationary environment. However, the overall impact on consumer spending will depend on the frequency of use and the availability of other affordable alternatives.
Payer Perspective
For payers, including insurance companies and government programs, stable or decreasing prices for generic drugs can lead to cost savings. This is particularly important as payers seek to manage healthcare costs effectively while ensuring access to necessary medications.
Key Takeaways
- Pricing Trends: Generic drugs, including NDC 70677-0001, are likely to see stable or slightly decreasing prices due to industry trends.
- Regulatory Impact: FDA regulations and potential price-fixing litigation can affect pricing.
- Competitive Landscape: The competitive market for nasal decongestants influences pricing strategies.
- Consumer and Payer Impact: Stable or decreasing prices benefit both consumers and payers.
FAQs
Q: What is the current active ingredient strength of NDC 70677-0001?
A: The current active ingredient strength of NDC 70677-0001 is 120 mg of Pseudoephedrine Hydrochloride per tablet[1].
Q: How does the Medicare Drug Price Negotiation Program affect generic drugs like NDC 70677-0001?
A: While the program primarily affects Medicare-covered drugs, it can indirectly influence the pricing of similar therapeutic alternatives, including generic drugs like NDC 70677-0001[2].
Q: What are the expected price trends for generic drugs in 2024?
A: Generic drugs are expected to experience mid-single-digit percent annual price erosion but with a return to modest revenue growth[3].
Q: How has the Wholesale Acquisition Cost (WAC) for generic drugs changed in recent years?
A: The WAC for generic drugs has generally decreased over the past few years, with a notable decrease in all but one category in 2021[4].
Q: What factors can impact the pricing of NDC 70677-0001 in the future?
A: Factors such as regulatory changes, competition, and broader industry trends can impact the pricing of NDC 70677-0001.
Sources
- FDA.report: NDC 70677-0001 Oral Tablet, Extended Release nasal ... - FDA.report
- CMS: Negotiated Prices for Initial Price Applicability Year 2026 - CMS
- S&P Global: Pharmaceutical Industry 2024 Credit Outlook Is Stable As Revenue ...
- MHDO: MHDO Rx Transparency Report_221213.pdf