The retail prices of 19 brand-name prescription dermatology medications have increased an average of more than 400% over the past six years, according to a study. Those findings are sure to add support to the growing public discord over the rising cost of drugs.
Two of the most significant price increases involved medications manufactured by Canadian drug firm Valeant Pharmaceuticals International Inc., which is one of the companies recently facing controversy after they bought the rights to sell older drugs whose patents have expired only to immediately increase their price.
In 2013, Valeant purchased the rights to sell Targretin gel, a topical medication used to treat skin problems associated with a certain form of cancer, for $65 million. The cost of Targretin rose from $1686 to $1787 between 2009 and 2011, according to the study. In 2014, the price spiked to more than $15,000 for a two-ounce tube, and then this year jumped again to more than $30,000 for the same amount.
A similar increase occurred with another Valeant drug, Carac cream, which treats keratosis. Valeant bought the rights to sell Carac cream in 2011 from Dermik, a dermatology unit of drug maker Sanofi in deal valued at more than $425 million. It then raised the price of the drug from $227 to more than $2,800 by 2015.
The prices of both Carac cream and Targretin gel increased by nearly 1,700% between 2009 and 2015, according to the study published online Wednesday in JAMA Dermatology.
Price increases occurred among all anti-cancer, dermatologic drugs, whose costs rose by nearly 1,200% between 2009 and 2015.
“We have been getting lots of complaints from patients that they can't afford their medicines,” said study co-author Dr. Steven P. Rosenberg, a dermatologist with a practice in West Palm Beach, Fla. “We really didn't know for sure why, but when we started to see what these prices looked like, it was obvious something was going on.”
Researchers analyzed price data of 19 brand-name drugs sold at four retail pharmacy chains during 2009, 2011, 2014 and 2015. The drugs treated acne, rosacea and psoriasis, and included anti infectives, antineoplastics, and corticosteroids. The study found the retail prices of seven drugs had more than quadrupled during the study period, with the vast majority of price increases occurring after 2011. Even the prices of several generic medications saw sharp increases during the study period.
Though the medications produced by Valeant represented the single largest increases of any drug studied, the prices of a number of other medications also rose sharply over the study period, as well as several generic medications, some of which quadrupled in cost.
High drug prices have become a key political issue during this presidential election cycle, as a number of candidates, both Democratic and Republican, have spoken out about a need to address rising costs.
Several leading presidential candidates, including Democratic contenders Hillary Rodham Clinton and Vermont Sen. Bernie Sanders as well as Republican candidate Sen. Marco Rubio of Florida, have blasted drug companies. Sanders and Clinton have outlined plans that would allow Medicare to negotiate prices for drugs and let patients purchase cheaper drugs from foreign merchants.
Overall, prices on prescription drugs have steadily risen over the past few years; a trend many healthcare leaders have said has had a negative impact on the finances of their operations, according to results from Modern Healthcare's latest CEO Power Panel survey.
