Jan 29, 2021 – Overall, prescription drug prices in the United States are more than 250% higher than in 32 other countries, according to a new report from RAND Corporation.
The price difference was even greater for branded drugs. US prices were 3.44 times higher than other countries. Now, generic drug prices in the US are a little lower than most other countries. Unbranded generics make up 84% of drugs sold in the US by volume but found only 12% of US spending.
“The vast majority of prescription drugs [in the U.S.] are for generics, and that’s where the US is doing pretty well, ”said Andrew Mulcahy, PhD, senior policy researcher at RAND and lead author of the report. “But we pay a lot more for branded drugs.”
“This RAND study confirms that US drug prices were 256% of drug prices in other countries, while branded drugs were 344% of prices in other countries.”
Brand Names = 82% of US Prescription Drug Spending and only 11% of US Prescription Drug Volume.’https: //t.co/kc76h7A08L
– Joshua Freeman (@jfreemanfp) January 29, 2021
RAND is a non-profit research organization. The research was sponsored by the U.S. Department of Health.
The goal of the research, says Mulcahy, was “to understand in a very broad way how prices stacked between these countries”.
In a statement, PhRMA, an industry group, says the US system relies on a competitive marketplace to control costs, and that the system works.
Report details
The RAND researchers used the latest available data for 2018 to estimate how much higher drug prices are in the US compared to those in other Organization for Economic Co-operation and Development (OECD) countries. The researchers arrived at the estimates by looking at industry-standard drug sales and volume data for 2018 and comparing the US with 32 other countries that are also members of the OECD. You caught most of the prescription drugs that were sold in the US and other countries.
The team used manufacturer’s drug prices instead of net prices, which were ultimately paid after rebates and other rebates, as net prices are not generally available, according to Mulcahy.
Bottom line, Mulcahy says, “On average, US prices are higher no matter which method you use. not a little, but a little. “
But on the generic side he says, “I think something is going right here.” The US is using generic prescription drugs more often and has lower prices compared to other countries.
Drug price sample: global look
Among the G7 countries, the lowest prescription prices were found in the UK, France and Italy, while Canada, Germany and Japan usually have higher prices, but still much lower than the US
The latest studies comparing US drug prices with those in other countries are nearly 10 years old, according to Mulcahy, so this research is necessary.
The researchers estimated that in all of the countries studied, total drug spending was $ 795 billion. The U.S. accounted for 58% of sales but only 24% of the volume.
Consider subsets
While the researchers weren’t looking at individual drugs, they looked at specific groups of drugs, such as: B. Biologics. “Many of the most expensive drugs are the biological treatments that are often advertised on TV,” says Mulcahy.
Biologicals are drugs that are made from living organisms or parts of living organisms. Examples are infliximab (Remicade) for arthritis and trastuzumab (Herceptin) for cancer.
One way to reduce these costs is to use biosimilar drugs. By December, the FDA had approved 29 biosimilars. Manufacturers of biosimilars must demonstrate that their drugs do not show any clinically meaningful differences between them and the original drug.
Pharma reacts
The report recognizes that Americans sometimes pay more for medication, according to PhRMA spokeswoman Nicole Longo. “But if we do that, then it will be for innovative, life-saving drugs, not for generics that have been on the market for some time. This helps ensure Americans have access to the latest medical advances. “
“There are cases when we need to eliminate price differences between the US and other countries, and trade deals and enforcement are one way to fix those issues,” she says. “Policymakers should also implement common sense reforms to fix our system, which is cutting costs for patients out of pocket.”
Remedial measures proposed by PhRMA include annual caps on expenses, lower co-payment costs, and ways that patients can spread costs over the year.
WebMD Health News
sources
RAND, “International Price Comparison for Prescription Drugs: Current Empirical Estimates and Comparison with Previous Studies,” January 28, 2021.
Andrew Mulcahy, PhD, senior policy researcher, RAND Corporation.
Nicole Longo, Spokesperson, PhRMA, Washington, DC.
FDA: “Biosimilar Product Information.”
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