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Brand Name Drug Price Increases
Accelerate in First Quarter, Says AARP
June 30, 2004 - Wholesale prices for 197 brand name
prescription drugs most frequently used by older Americans rose 3.4
percent during the three-month period ending March 31, 2004 compared to
a 1.2 percent rate of general inflation for the same period. The average
annual rate of increase rose from 6.9 percent for the 12 months ending
December 2003 to 7.2 percent for the 12 months ending March 2004,
according to an AARP study released today.
"Since at least 2000, drug prices have risen
steadily. The first three months of 2004 looks like more of the same,"
said AARP Board Member Doug Holbrook. "This is an outrage."
The report, "
Trends
in Manufacturer Prices of Brand Name Prescription Drugs Used by Older
Americans-First Quarter 2004 Update", is the first quarterly update
in an ongoing study of changes in prices that drug manufacturers charge
wholesalers. A baseline study published in May 2004 looked at prices
between 2000 and 2003 and found manufacturers' wholesale prices, on
average, had steadily increased and, for each year, exceeded the rate of
general inflation. Researchers are focusing on manufacturers' price to
wholesalers because it is the most substantial component of a
prescription drug's retail price.
The study, published by the AARP Public Policy
Institute (PPI), found that 29 percent (58) of the drugs studied had
increases in the first quarter (i.e., the period from December 31, 2003
to March 31, 2004) of more than 5 percent, or more than four times the
rate of inflation for the same period. First quarter increases of more
than 7.5 percent were found in almost 11 percent (21) of the drugs. Of
the 25 brand name drugs with the greatest sales in 2003, nearly
two-thirds (16) had price increases in the first quarter of 2004. Plavix
75 mg, which is third in sales among the drugs studied, had the highest
percentage increase among the top 25 drugs, with 7.9 percent in the
first quarter. The PPI study was coauthored by AARP's David Gross and
Susan Raetzman with Professor Stephen Schondelmeyer of the University of
Minnesota.
The study was released in tandem with the latest
issue of the
"Rx Watchdog Report," a newsletter directed at consumers. The
newsletter provides information about pricing issues as well as
legislative and legal actions focused on making drugs more affordable.
In addition to a summary of the study, the second issue of the "Rx
Watchdog Report" has information on the Senate proposal supported by
AARP to allow the importation of prescription drugs the comparative
effectiveness of drugs and pharmaceutical advertising. The study and the
latest newsletter were released as part of AARP's fight for affordable
prescription drugs.
AARP's top priority this year is making drugs
affordable, and the organization is engaged in a campaign that includes
support of the safe importation of prescription drugs starting with
Canada.
Go to the full report:
"Trends in Manufacturer Prices of Prescription Drugs Used by Older
Americans".
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