ORLANDO, Fla., May 18, 2011 /PRNewswire/ -- Expensive new cancer
drugs treating increasing numbers of patients could drive cancer
drug spending by as much as 15 percent a year through 2013. At this
accelerated rate, oncology drugs will likely rise to the second or
third largest trend-driving category by 2015, following only
diabetes and central nervous system (CNS) treatments, according to
the newly released 2011 Medco Drug Trend Report which tracks
utilization and spending.
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Although the incidence of some types of cancers may be
decreasing, with better detection the overall numbers of cancers
reported in an aging population has increased significantly.
Fortunately, due to advanced treatment, the number of U.S. cancer
survivors is expected to increase by more than 30 percent -- from
13.8 million in 2010 to 18 million by 2020.
This has heightened demand for oncology specialty drugs –
targeted therapies that have increased 6.7 percent according to the
report by Medco Health Solutions, Inc. (NYSE: MHS). The drug trend
for specialty cancer treatments reached 21.2 percent, due primarily
to unit cost increases of 13.7 percent.
"New cancer drugs reaching the market are expected to double
during the next several years," said Dr. Glen Stettin, Medco's chief medical officer.
"Early diagnosis, evidence-based treatment and enhanced coordinated
care have essentially turned some forms of the condition into
chronic illnesses that can be managed longer-term. Continued
innovation, including companion diagnostic or pharmacogenomic
testing, can help ensure the right person is getting the right drug
at the proper dose and reduce waste. However, due to the high cost
and extended time patients may need for treatment, using these
latest design management tools is paramount."
With the use of many newly introduced specialty drugs reaching
market in recent years, oncology drug price inflation surged to
11.5 percent during 2010. Higher prescribing for newer treatments
such as Revlimid® (lenalidomide) for multiple myeloma and Gleevec®
(imatinib mesylate), a tablet for chronic myeloid leukemia and
gastrointestinal stromal tumors drove sharp increases in trend.
More than 90 percent of anti-cancer drugs approved since 2004 cost
more than $20,000 for a 12-week
course of therapy, according to the Journal of the National Cancer
Institute.
Many of these newer treatments are oral medications or can be
self administered, changing the dynamic of cancer care delivery
toward the home, rather than in physician's office or infusion
center. This dynamic shows no signs of abating.
"It's an exciting time in the area of cancer treatment, but as
these new, targeted treatments come to market it is vital to ensure
that each patient and caregiver understands the importance of
adherence and the detailed dosing instructions associate with
them," said Dr. Milayna Subar,
national practice leader for the Medco Oncology Therapeutic
Resource Center™. "Helping patients manage the unique needs of
their disease across the continuum of care with specialists and a
personalized medicine program will help to improve outcomes for the
patient and could help to manage down the projected drug trend of
15-17 percent for these new specialty medications."
Stettin added: "The emergence of biosimilar drugs will help
mitigate some of the costs of specialty drugs, when they start to
reach the marketplace in or around 2013. We are already working
with employers and other health plan providers to prepare for these
fast-approaching future trends."
2010 Drug Trend: 3.7 Percent
Higher generic drug dispensing helped limit prescription drug
spending growth to 3.7 percent during 2010, the report also
revealed. In 2010, more than 71 percent of the prescription drugs
dispensed were for generics. In fact, Medco, during its second
quarter earnings reported that the generic dispensing rate had
reached a record 73 percent. Generic drugs had a limited inflation
rate of 0.5 percent and served as a lever to control overall
prescription drug costs during 2010, the report said. Drug
utilization during 2010 increased 2.1 percent, which is the highest
rate of growth since 2005 when it was 2.7 percent.
Specialty drugs, which are largely brand-name biologics,
accounted for 70.1 percent of overall drug trend. Both
utilization and unit costs increased for these medicines, which
treat rheumatoid arthritis, multiple sclerosis, cancer, and an
array other conditions, including rare diseases such as hemophilia
and pulmonary arterial hypertension.
"We have helped our clients adapt to these changes in the
pharmaceutical market by advising them to take advantage of the
savings provided by generics and mail order, both of which serve to
counter the cost of brand name and specialty drugs," said Medco
Chairman and CEO David B. Snow Jr.
"Our clients have benefited from relatively modest increases in
pharmacy spending, as well as use of the Medco
Therapeutic Resource Centers™ and personalized medicine to
improve patient outcomes and mitigate medical costs."
Diabetes drugs – the leading trend driver
For the fourth consecutive year, diabetes medications were the
largest therapeutic category of drugs for driving overall spending
growth. The drug trend for this group, which includes insulin,
hypoglycemic drugs, glucose-elevating agents and supplies, was 7.6
percent. However, the large number of patients with diabetes led
this category to contribute nearly 17 percent of the overall growth
in drug spending last year. Unit costs for these medicines
increased 5 percent and utilization increased 2.5 percent.
"Demand for these diabetes drugs as a category remains unabated
as America struggles with what has become a worldwide epidemic,"
Stettin said. "The number of people in the U.S. being treated for
diabetes is expected to increase from nearly 25 million today to 44
million by 2035. Lifestyle changes, especially diet and exercise,
need to be emphasized in order to address the financial and health
care burden brought about by this disease."
Respiratory, rheumatological, neurological and ADHD drugs were
other key categories for driving spending growth. Generic versions
of treatments for migraines, seizures and ulcers helped moderate
prescription spending. Cancer treatments ranked seventh among the
key drivers of costs for pharmacy benefit plans, but much of the
costs for these drugs are not reflected in the Medco Drug Trend
Report, since these treatments are often covered under major
medical benefits.
To view the 2011 Medco Drug Trend Report, please visit
www.drugtrendreport.com.
About Medco
Medco Health Solutions, Inc. (NYSE: MHS) is pioneering the
world's most advanced pharmacy® and its clinical research
and innovations are part of Medco making medicine smarter™
for approximately 65 million members.
With more than 20,000 employees worldwide dedicated to improving
patient health and reducing costs for a wide range of public and
private sector clients, and 2010 revenues of $66 billion, Medco ranks 34th on the 2011 Fortune
500 list and is named among the world's most innovative, most
admired and most trustworthy companies.
For more information, go to http://www.medcohealth.com.
This press release contains "forward-looking statements" as that
term is defined in the Private Securities Litigation Reform Act of
1995. These statements involve risks and uncertainties that may
cause results to differ materially from those set forth in the
statements. No forward-looking statement can be guaranteed, and
actual results may differ materially from those projected. We
undertake no obligation to publicly update any forward-looking
statement, whether as a result of new information, future events,
or otherwise. Forward-looking statements in this press release
should be evaluated together with the risks and uncertainties that
affect our business, particularly those mentioned in the Risk
Factors section of the Company's Annual Report on Form 10-K and
Quarterly Reports on Form 10-Q filed with the Securities and
Exchange Commission.
SOURCE Medco