A new Government Accountability Office study has found that the number of brand-name drugs undergoing price increases of 100% or more doubled between 2000 and 2008.
The
study, “Brand-Name Prescription Drug Pricing: Lack of Therapeutically Equivalent Drugs and Limited Competition May Contribute to Extraordinary Price Increases,” followed price changes over the nine-year period and found extraordinary increases of 100% to nearly 500% on 416 products—different drug strengths and dosage forms—made from 321 drug brands. Extraordinary price increases occurred on roughly 0.5% of all brand-name drug products available during that period.
In 2000, there were 28 extraordinary price increases for brand-name drug products, while in 2008 there were 71.
GAO researchers attributed the price increases to patent protection and corporate consolidation activities that thwart the creation and availability of generic versions or competing drug brands. For example, two of six case-study drugs that researchers reviewed experienced extraordinary price increases while under patent protection. In two other cases, prices increased after rights to each of those drugs were acquired by companies producing competitor products.
The study found extraordinary price increases occurred among 20 drug classes, but three classes—central nervous system, anti-infective and cardiovascular drug therapies—accounted for 52% of the price increases.
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