Understanding the NDC Code
The National Drug Code (NDC) is a unique identifier assigned to each drug product, including the labeler, product, and package. For the NDC 75834-0205, this code breaks down into three segments: the labeler code, the product code, and the package code. This identification is crucial for tracking and managing drug prices and usage[4].
Identifying the Drug
To analyze the market and price projections for the drug with NDC 75834-0205, it is essential to identify the specific drug product. However, without specific details from the provided sources, we need to rely on general methodologies used in drug price analysis.
Methodology for Price Analysis
Drug price analysis typically involves several key factors:
Price Increases
Drugs are often reviewed for significant price increases. For instance, a drug may be subject to review if its price increases by 15% or more in any 12-month period or by 50% or more over three years[1].
Wholesale Acquisition Cost (WAC)
The WAC is a critical metric in determining the price of a drug. It is the price at which the drug is sold to wholesalers and is often used as a benchmark for pricing analyses[1].
Market Trends
Market trends, such as the introduction of new indications, the emergence of biosimilars, and the impact of specialty pharmaceuticals, can significantly influence drug prices.
Current Market Trends
Drug Price Inflation
Recent projections indicate that drug price inflation is expected to grow. Vizient projects a 3.81% overall drug price inflation rate for 2025, driven in part by specialty pharmaceuticals and the expanding indications of previously approved medications[2].
Specialty Pharmaceuticals
Specialty pharmaceuticals, including weight loss drugs and gene therapies, are expected to drive up costs. For example, semaglutide, used for diabetes and obesity, has seen a significant increase in spend due to its expanded indications[2].
Biosimilars
Biosimilars are expected to grow in market share, although their impact on prices may be minimal. For instance, biosimilar adalimumab products are expected to gain market share, but Humira may continue to dominate until biosimilars are mandated at the payer level[3].
Price Projections for NDC 75834-0205
Without specific data on the drug associated with NDC 75834-0205, we can only make general projections based on current market trends.
Potential Price Increases
If the drug associated with NDC 75834-0205 is a brand name or specialty pharmaceutical, it may be subject to the same inflationary pressures as other drugs in its class. A 3.81% increase, as projected by Vizient, could be a reasonable estimate for the coming year[2].
Impact of Biosimilars
If the drug has biosimilar competitors, the price might be influenced by the entry of these biosimilars into the market. However, biosimilars typically do not lead to significant price reductions immediately, especially if the original biologic product remains dominant[3].
Case Studies and Examples
Semaglutide
The case of semaglutide (Ozempic® and Wegovy®) illustrates how expanding indications can drive up costs. Semaglutide's spend increased by 77% due to its new indications for reducing major adverse cardiovascular events in overweight or obese adults with established cardiovascular disease[2].
CAR-T Therapies
CAR-T therapies, used in treating blood cancers, have seen exponential growth and significant price increases. These therapies are priced at over $455,000 per treatment and have experienced recent price hikes, with some products increasing by 9% since November 2023[2].
Key Takeaways
- Drug Price Inflation: The overall drug price inflation rate is projected to be around 3.81% for 2025.
- Specialty Pharmaceuticals: These are driving up costs, particularly with the expansion of indications for existing drugs.
- Biosimilars: While growing in market share, biosimilars are not expected to significantly reduce prices immediately.
- Market Trends: Expanding indications and the introduction of new therapies, such as gene and cell therapies, will continue to impact drug prices.
FAQs
Q: What is the significance of the NDC code in drug price analysis?
A: The NDC code is crucial for identifying the specific drug product, its labeler, product details, and package size, which are essential for tracking and managing drug prices.
Q: How are significant price increases for drugs determined?
A: Significant price increases are typically determined by a 15% or more increase in any 12-month period or a 50% or more cumulative increase over three years.
Q: What role do biosimilars play in drug price projections?
A: Biosimilars can influence prices but are not expected to reduce them significantly until they gain substantial market share and are mandated at the payer level.
Q: How do expanding indications affect drug prices?
A: Expanding indications can lead to increased usage and higher spend on the drug, as seen with semaglutide, which increased by 77% due to new indications.
Q: What are the projected costs associated with new therapies like gene and cell therapies?
A: These therapies are expected to significantly impact provider budgets, with costs exceeding $455,000 per treatment for some CAR-T therapies.
Sources
- Methodology for Identifying Drugs for Affordability Review - HCA Washington State.
- Vizient Projects Drug Price Inflation at 3.81% - Vizient Inc.
- Vizient Projects 3.8% Drug Price Increase Driven by Specialty Pharmaceuticals - Vizient Inc.
- NDC Directory - YouTube.
- Prescription Drug Price Transparency Results and Recommendations - Oregon Department of Consumer and Business Services.
