Hospitals’ pharmacy spending is projected to rise by 3.42% subsequent yr, in response to a brand new report revealed by Vizient. Specialty medicine and neurology drugs are the first drivers of this improve in pharmacy bills.
Vizient is a healthcare efficiency enchancment firm that gives hospitals with advisory companies and knowledge analytics. For its report, the agency analyzed knowledge from its clients’ aggregated pharmacy buying quantity.
The report predicted that semaglutide, an antidiabetic medicine that Novo Nordisk sells underneath the model names Ozempic, Wegovy and Rybelsus, might be among the many prime ten medicine driving hospitals’ pharmacy bills in 2024. The medicine was quantity 30 on the record when Vizient issued this report 12 months in the past — however hospitals’ spending on semaglutide has greater than doubled over the previous yr. Spending on this drug is anticipated to go up subsequent yr on account of each the 5% wholesale acquisition price improve in addition to the rising consciousness of its numerous makes use of, the report stated.
The report additionally identified that the neurology service line is witnessing developments in new drug growth and rising costs, which is resulting in elevated utilization by healthcare suppliers and better bills. For instance, hospitals’ utilization of calcitonin gene-related peptide (CGRP) therapies for migraine therapy has elevated over the previous few years. The annual therapy price for this remedy is about $6,900, and Vizient clients noticed a 73% improve of their spending for these medicine in 2023, the report confirmed.
Moreover, ocrelizumab, a drug that Genentech sells underneath the model identify Ocrevus, has been a big a part of Vizient clients’ total expenditure for a number of sclerosis therapy in 2023, and it’s projected to have one of many highest value will increase amongst all medicine subsequent yr.
Nonetheless, in December, the FDA permitted monoclonal antibody ublituximab as a substitute therapy. This new drug presents shorter infusion period and comes with a decrease wholesale acquisition price, making it essentially the most cost-effective monoclonal antibody permitted to deal with relapsing types of a number of sclerosis. Its introduction could allow suppliers to scale back their bills, in response to the report.
The report additionally identified that hospitals’ spending on remdesivir, a Covid-19 drug that Gilead sells underneath the model identify Veklury, has decreased considerably to date in 2023. This development is anticipated to proceed subsequent yr, in response to the report. Remdesivir is now quantity 13 on Vizient’s record of medication that contribute essentially the most to its clients’ pharmacy bills — after being primary in 2022.
Primary is now adalimumab, which AbbVie sells underneath the model identify Humira. The medicine is used to deal with numerous autoimmune illnesses and inflammatory situations, equivalent to rheumatoid arthritis, Crohn’s illness and plaque psoriasis. The report predicted that adalimumab will keep its place as the best contributor to hospitals’ pharmacy spending in 2024 regardless of ten biosimilar opponents coming into the market this yr.
It may take a number of years for adalimumab’s biosimilar opponents to truly have an effect on hospital pharmacy spending, given the time it can take for these medicine to make it onto payer formularies and acquire widespread acceptance from suppliers and sufferers, the report stated.
Biosimilars are making an impression in different areas, although. For instance, hospitals’ utilization of biosimilar merchandise for insulin glargine makes up 7% of the market, in response to the report. Moreover, biosimilars for the monoclonal antibodies Avastin, Herceptin and Rituxan, in addition to hematopoietic medicine like Neupogen, Neulasta and Epogen now personal a large share of the market.
Amongst medicine for which a biosimilar is obtainable, the report projected that biosimilars will make up almost 1 / 4 of spending in 2024. It additionally predicted that costs for biosimilars will keep the identical, whereas costs for originator medicine are anticipated to rise by 2.74%.
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