Researchers find alarming rise in cost of MS drugs over past 2 decades

http://www.eurekalert.org/pub_releases/2015-04/ohs-rfa042415.php

Public Release: 24-Apr-2015
Oregon Health & Science University

A new study shows an "alarming rise" over the last 20 years in the costs of drugs used to slow the progression of multiple sclerosis or reduce the frequency of attacks, according to a study led by researchers at Oregon Health & Science University (OHSU) and Oregon State University (OSU).

A substantial increase in the number of MS drugs in the marketplace over the past 20 years, paradoxically, did not lead to lower or stabilized costs for patients who use those drugs. Researchers found the costs of all drugs used to treat MS - including first-generation therapies - skyrocketed.

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The costs of MS drugs accelerated at rates five to seven times higher than prescription drug inflation and substantially higher than rates for drugs in a similar class between 1993 and 2013, the researchers report. Drug costs for several MS agents rose on average 20 to 30 percent per year over this time period.

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Researchers found that long-standing drugs, such as Betaseron™, Avonex™ and Copaxone™, originally costing $8,000 to $11,000, now cost approximately $60,000 per year - an average increase of 21 to 36 percent annually. Their cost acceleration corresponded with the approval of newer agents, including Gilenya™, Aubagio™, and Tecfidera™, which have increased 8 to 17 percent annually since their approval. During that same period, general and prescription drug inflation only increased 3 to 5 percent per year.

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Researchers also examined the costs paid by the U.S. Department of Veterans Affairs (VA) because of its ability to negotiate discounts directly with manufacturers. Their analysis shows that on average costs for the VA were 36 percent less than those paid by Medicaid, including a nearly 80 percent discount for Betaseron™. This cost disparity suggests the sharp rise in U.S. prices is not the result of increases in manufacturing costs.

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The lack of transparency within pharmaceutical pricing and purchasing, and the absence of a national health care system within the U.S. to negotiate prices directly with the pharmaceutical industry may have contributed to the soaring costs of these drugs, according to the researchers.
[Republicans blocked Medicare from negotiating with drug companies for cheaper prices, the way private insurance companies do.]

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