PLYMOUTH MEETING, Penn., July 10 /PRNewswire/ -- The annual rate of change
for prescription drug prices increased slightly from 3.1 percent for the first
quarter of 1998 to 3.4 percent for May, according to IMS HEALTH. The annual
rate had remained unchanged since the fourth quarter of 1997. These figures
are based upon the company's analysis of 20,000 pharmaceutical products,
taking into account unit volume and invoice-based discounts.
Prescription drug prices for April 1998 versus April 1997 increased 3.3
percent, up 0.2 percentage points from the first quarter 1998 rate. IMS
HEALTH is the world's leading provider of information solutions to the
pharmaceutical and healthcare industries.
Moderate Price Shift Up for Brands, Down for Generics
The annual rate of change for prices of branded pharmaceuticals in May
1998 was 4.4 percent, up 0.3 percentage points from the 4.1 percent annual
rate reported for April 1998. This current rate of change is 0.5 percentage
points higher than the annual figure reported for the first quarter of 1998.
Prices for generic drugs in May 1998 decreased 5.9 percent from prior-year
figures and more than the previous month. April 1998 prices were down 5.1
percent from April 1997. When compared to the rate for the first quarter of
1998 versus first quarter of 1997 -- a decline of 5.4 percent -- May is a
higher rate of decline by 0.5 percentage points.
Rate Below Double-Digit Reports
"Contrary to recent reports of double-digit price increases for
prescription drugs, the industry has maintained a conservative posture in drug
price increases," commented Myron Holubiak, general manager of The Plymouth
Group, the consulting arm of IMS HEALTH. He noted how the acceptance of
newer, advanced drugs continues to proceed at a rapid rate, thus influencing a
market-basket approach to calculating purchaser outlay for prescription
pharmaceuticals. "It's questionable if the market basket approach reflects
the true economic impact of drugs," he stated, "since the newer therapies may
be providing significant incremental benefit that is not captured in these
types of analyses."
Figures Reflect Acquisition Prices of 20,000 Products
IMS HEALTH's acquisition-price database encompasses more than 20,000
pharmaceutical products and is updated continuously. The database reflects
invoice-based discounts for pharmaceutical purchases. It does not include
subsequent, off-invoice rebates that, if considered, could further reduce drug
purchase prices. IMS HEALTH calculates all price changes on a weighted
average level, based on unit volume. As a result, the rate of price change is
driven by those products with the highest unit volume. All rates calculated
by IMS HEALTH use actual transaction prices, not list prices such as Average
Wholesale Price (AWP).
IMS HEALTH
IMS HEALTH is the world's leading provider of information solutions to the
pharmaceutical and healthcare industries. With more than $1 billion in 1997
revenue, IMS HEALTH operates in over 90 countries. IMS HEALTH is the largest
pharmaceutical manufacturer information partner, with over 40 years'
experience in the industry. Key products and services integral to customer
day-to-day operations include: market research for prescription and
over-the-counter pharmaceutical products; sales management information to
optimize sales force productivity; technology enabled selling solutions for
sales and marketing decision-making; technologies systems and information
services that support managed care organizations. Additional information and
previous press releases are available at IMS HEALTH's web site:
http://www.imshealth.com.
SOURCE IMS HEALTH
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