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May 26, 2015; 84 (21) Contemporary IssuesOpen Access

The cost of multiple sclerosis drugs in the US and the pharmaceutical industry

Too big to fail?

Daniel M. Hartung, Dennis N. Bourdette, Sharia M. Ahmed, Ruth H. Whitham
First published April 24, 2015, DOI: https://doi.org/10.1212/WNL.0000000000001608
Daniel M. Hartung
From the College of Pharmacy (D.M.H., S.M.A.), Oregon State University/Oregon Health & Science University; and the Department of Neurology (D.N.B., R.H.W.), Oregon Health & Science University, Multiple Sclerosis Center of Excellence West, Veterans Affairs Medical Center, Portland.
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Dennis N. Bourdette
From the College of Pharmacy (D.M.H., S.M.A.), Oregon State University/Oregon Health & Science University; and the Department of Neurology (D.N.B., R.H.W.), Oregon Health & Science University, Multiple Sclerosis Center of Excellence West, Veterans Affairs Medical Center, Portland.
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Sharia M. Ahmed
From the College of Pharmacy (D.M.H., S.M.A.), Oregon State University/Oregon Health & Science University; and the Department of Neurology (D.N.B., R.H.W.), Oregon Health & Science University, Multiple Sclerosis Center of Excellence West, Veterans Affairs Medical Center, Portland.
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Ruth H. Whitham
From the College of Pharmacy (D.M.H., S.M.A.), Oregon State University/Oregon Health & Science University; and the Department of Neurology (D.N.B., R.H.W.), Oregon Health & Science University, Multiple Sclerosis Center of Excellence West, Veterans Affairs Medical Center, Portland.
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Citation
The cost of multiple sclerosis drugs in the US and the pharmaceutical industry
Too big to fail?
Daniel M. Hartung, Dennis N. Bourdette, Sharia M. Ahmed, Ruth H. Whitham
Neurology May 2015, 84 (21) 2185-2192; DOI: 10.1212/WNL.0000000000001608

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This article has a correction. Please see:

  • The cost of multiple sclerosis drugs in the US and the pharmaceutical industry: Too big to fail? - November 10, 2015
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Abstract

Objective: To examine the pricing trajectories in the United States of disease-modifying therapies (DMT) for multiple sclerosis (MS) over the last 20 years and assess the influences on rising prices.

Methods: We estimated the trend in annual drug costs for 9 DMTs using published drug pricing data from 1993 to 2013. We compared changes in DMT costs to general and prescription drug inflation during the same period. We also compared the cost trajectories for first-generation MS DMTs interferon (IFN)–β-1b, IFN-β-1a IM, and glatiramer acetate with contemporaneously approved biologic tumor necrosis factor (TNF) inhibitors.

Results: First-generation DMTs, originally costing $8,000 to $11,000, now cost about $60,000 per year. Costs for these agents have increased annually at rates 5 to 7 times higher than prescription drug inflation. Newer DMTs commonly entered the market with a cost 25%–60% higher than existing DMTs. Significant increases in the cost trajectory of the first-generation DMTs occurred following the Food and Drug Administration approvals of IFN-β-1a SC (2002) and natalizumab (reintroduced 2006) and remained high following introduction of fingolimod (2010). Similar changes did not occur with TNF inhibitor biologics during these time intervals. DMT costs in the United States currently are 2 to 3 times higher than in other comparable countries.

Conclusions: MS DMT costs have accelerated at rates well beyond inflation and substantially above rates observed for drugs in a similar biologic class. There is an urgent need for clinicians, payers, and manufacturers in the United States to confront the soaring costs of DMTs.

GLOSSARY

AWP=
average wholesale price;
DMT=
disease-modifying therapy;
FDA=
Food and Drug Administration;
IFN=
interferon;
MS=
multiple sclerosis;
QALY=
quality-adjusted life-year;
TNF=
tumor necrosis factor;
VA=
Veterans Affairs;
WAC=
wholesale acquisition cost

Footnotes

  • Go to Neurology.org for full disclosures. Funding information and disclosures deemed relevant by the authors, if any, are provided at the end of the article. The Article Processing Charge was paid by OHSU Department of Neurology.

  • Editorial, page 2105

  • Supplemental data at Neurology.org

  • Received August 25, 2014.
  • Accepted in final form January 15, 2015.
  • © 2015 American Academy of Neurology

This is an open access article distributed under the terms of the Creative Commons Attribution-Noncommercial No Derivative 3.0 License, which permits downloading and sharing the work provided it is properly cited. The work cannot be changed in any way or used commercially.

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Letters: Rapid online correspondence

  • Re:Pricing Calculations
    • Daniel M. Hartung, Faculty, Oregon State University / Oregon Health & Science Universityhartungd@ohsu.edu
    • Dennis N. Bourdette, Portland, OR; Sharia Ahmed, Portland, OR; Ruth H. Whitham, Portland, OR
    Submitted June 30, 2015
  • Pricing Calculations
    • Brian E. Rittenhouse, Associate Professor of Social and Administrative Sciences, MCPHS Universitybrian.rittenhouse@mcphs.edu
    Submitted June 18, 2015
  • Impact of high cost MS drugs on patient care
    • Daniel M. Hartung, Faculty, Oregon State University / Oregon Health & Science Universityhartungd@ohsu.edu
    • Dennis N. Bourdette, Portland, OR; Ruth H. Whitham, Portland, OR
    Submitted May 18, 2015
  • Keeping the Horse in the Barn
    • John R Tischner, Corporate Account Manager, MS patientjohnt@creativebioscience.com
    Submitted May 12, 2015
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