“The reason for the increase in prescription drug costs is simple: The cost of producing a drug is skyrocketing, and the cost of maintaining a drug supply chain is falling,” said Dr. William Dolan, co-author of the study, who was director of the FDA’s Office of Pharmacy Innovation for 25 years.
“The result is more drug-related hospitalizations, fewer prescriptions and, in some cases, a decrease in overall economic activity, the study says.”
Our study found that the increase is related to the need for more drug manufacturing capacity, and that these factories can be located near the most congested hospitals and medical facilities, where the risk of drug-induced infections is greatest,” Dr. Dolan said.
The study’s findings, which were released Wednesday, come at a time when the U.S. is facing unprecedented demand for prescription drugs and a sharp drop in the cost per dose of those medications.
Last year, the cost for a single-dose generic drug, or the most expensive of three drugs, was about $14,000, down about 25% from 2014.
The cost for generic-drugs from other generic-makers was $11,500 in 2015, down 12% from the previous year.
The rise in costs has prompted some manufacturers to move production to less-expensive facilities.
But the new findings suggest there are also more options for the drugmakers, such as increasing the number of manufacturing facilities to keep costs down.
The drugmakers’ study was conducted in partnership with the Federal Trade Commission and the American Society of Pharmaceutical Scientists, and included information on the cost to fill prescriptions, the number and size of pharmacies and the number, size and location of drug distribution centers.
For example, the researchers found that in the last five years, drug prices have been rising as the cost-per-dose increases.
In 2015, a generic version of an anti-cancer drug, rivastigmine, cost $9,800, down from $19,800 in 2014.
Generic versions of other drugs were about the same at $8,700 in 2015 and $12,100 in 2014, according to the study.
The cost per prescription for a generic drug has dropped from $1,500 to $1.75 in the same period.
In the last two years, the generic prices have dropped by about 15%, the study found.
The researchers also examined a number of factors that could impact drug costs, including supply chain and pricing, which are the primary determinants of costs.”
But you still have to consider other factors, including the cost and availability of other generic drug products.””
In some cases that’s an affordable alternative.
But you still have to consider other factors, including the cost and availability of other generic drug products.”
The cost of a single generic drug was about 20% higher than the average cost for an alternative, which is about $9500 for a 12-pack of pills, the report found.
The generic prices were also about 50% higher, the equivalent of about $13,000 for a pack of generic pills.
The findings also showed that the cost could fall if the pharmaceutical industry changed its business model to use manufacturing capacity to expand production of drugs, rather than to build more distribution centers, as the drug companies did in the past.
The report said drug makers have “a growing number of options for increasing their drug manufacturing capabilities” that include increased capacity, better distribution centers and greater utilization of manufacturing space in less-congested areas.
While some companies have increased the number or size of facilities they have, others have not, Dr Dola said.
“It is very difficult to predict the extent to which the cost trends will continue to change,” he said.