{"id":13755,"date":"2016-05-02T13:00:11","date_gmt":"2016-05-02T20:00:11","guid":{"rendered":"https:\/\/sop.washington.edu\/?p=13755"},"modified":"2025-12-04T11:38:56","modified_gmt":"2025-12-04T19:38:56","slug":"bennette-sullivan-find-cancer-drug-prices-rise-rapidly-after-market-launch","status":"publish","type":"post","link":"https:\/\/staff.washington.edu\/twentzel\/wordpress\/bennette-sullivan-find-cancer-drug-prices-rise-rapidly-after-market-launch\/","title":{"rendered":"Bennette, Sullivan find cancer drug prices rise rapidly after market launch"},"content":{"rendered":"<h3>UW School of Pharmacy researchers\u2019 found large increases in oral anticancer drugs even in the face of increasing market competition<\/h3>\n<p>A new study published in the May issue of <em>Health Affairs<\/em> and authored by UW School of Pharmacy\u2019s faculty members, Caroline Bennette and Sean Sullivan<em>,<\/em> illuminates the complexity of anticancer drug pricing and several market forces that underlie large price increases in the years after a drugs\u2019 launch.<\/p>\n<figure id=\"attachment_13765\" aria-describedby=\"caption-attachment-13765\" style=\"width: 250px\" class=\"figure figure-caption wp-caption alignright\"><img loading=\"lazy\" decoding=\"async\" class=\"size-sidebar wp-image-13765\" src=\"https:\/\/sop.washington.edu\/wp-content\/uploads\/Bennette_Carrie_headshot-250x376.png\" alt=\"Caroline Bennette, PhD\" width=\"250\" height=\"376\" srcset=\"https:\/\/staff.washington.edu\/twentzel\/wordpress\/wp-content\/uploads\/Bennette_Carrie_headshot-250x376.png 250w, https:\/\/staff.washington.edu\/twentzel\/wordpress\/wp-content\/uploads\/Bennette_Carrie_headshot-199x300.png 199w, https:\/\/staff.washington.edu\/twentzel\/wordpress\/wp-content\/uploads\/Bennette_Carrie_headshot-100x150.png 100w, https:\/\/staff.washington.edu\/twentzel\/wordpress\/wp-content\/uploads\/Bennette_Carrie_headshot-300x451.png 300w, https:\/\/staff.washington.edu\/twentzel\/wordpress\/wp-content\/uploads\/Bennette_Carrie_headshot.png 428w\" sizes=\"auto, (max-width: 250px) 100vw, 250px\" \/><figcaption id=\"caption-attachment-13765\" class=\"wp-caption-text\">Caroline Bennette, PhD <\/figcaption><\/figure>\n<p>As Caroline Bennette was finishing her dissertation in the Pharmaceutical Outcomes Research and Policy Program (PORPP), she read a highly publicized paper that documented rising prices for cancer drugs. The paper claimed that the prices for innovative cancer drugs did not change much after launch. \u201cI remember the news headlines covering that paper\u2014they really emphasized the idea that launch prices was where all the action was. But that didn\u2019t fit with what I was hearing from pharmacists and patients, \u201d said Bennette, now on faculty in the UW School of Pharmacy.<\/p>\n<p>\u201cI was just curious. What was happening to cancer drug prices after launch? But I couldn\u2019t find the answer in the published literature,\u201d said Bennette, \u201cWith encouragement and support from my mentors, Sean Sullivan and Scott Ramsey at the Fred Hutchinson Cancer Center, I started looking at the trends directly.\u201d Using a large database of pharmaceutical claims housed in PORPP, Bennette looked at the prices of oral anticancer drugs approved by the Food and Drug Administration (FDA) between 2000 and 2012 in the years after they\u2019d been introduced. What she found went against the narrative that launch price was where all the action was. On average, the prices of these drugs continued to grow\u2014roughly 5% per year over inflation\u2014for years after their launch.<\/p>\n<p>She shared these initial findings with her mentors and several other faculty members in PORPP. \u201cThey thought I might be on to something, but immediately challenged me to dig deeper. Not all of the drugs in our analysis showed the same increases in price over time \u2013 some rose much faster and others slower. The real story was going to be explaining those differences.\u201d So Bennette dug deeper. Ultimately, she found that changing prices were associated with certain changes to the market, rising an additional 10 percent with each new FDA-approved indication for the drug and declining 2-3 percent with the approval of a competitor drug.<\/p>\n<p>Bennette points out that many new anticancer drugs are first shown to work in advanced or metastatic cancer \u2013 where the clinical benefits are often relatively small \u2013 and later approved for use in patients with earlier stages of the disease. In these cases, a supplemental indication for a drug may reflect a larger clinical benefit than in the original indication, which might warrant a higher price. But drugs currently have a single price across indications. Raising the price of a drug for patients with the original indication seems unfair if the value of the drug for those patients hasn\u2019t similarly increased. \u201cThere is a lot of discussion around the idea of using a value-based, indication-specific reimbursement system for anticancer drugs in particular,\u201d said Bennette, who recently began working with Peter Bach from Memorial Sloan Kettering Cancer Center on this front.<\/p>\n<figure id=\"attachment_8995\" aria-describedby=\"caption-attachment-8995\" style=\"width: 229px\" class=\"figure figure-caption wp-caption alignleft\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-8995\" src=\"https:\/\/sop.washington.edu\/wp-content\/uploads\/Sean-Sullivan.jpg\" alt=\"Sean Sullivan\" width=\"229\" height=\"300\" \/><figcaption id=\"caption-attachment-8995\" class=\"wp-caption-text\">Sean D. Sullivan, PhD <\/figcaption><\/figure>\n<p>In addition, the research team found that the introduction of a competitor drug had only a minimal impact on a drugs\u2019 price and concluded that competition is unlikely to rein in the escalating costs of oral anticancer drugs in the near future. Why? Cancer drugs are often used in combination so a new drug won\u2019t necessarily replace an older drug like it might in other conditions. In addition, several policies and regulations require many insurers to include nearly all oral anticancer drugs on their formularies, which further limits competitive pressure on manufacturers.<\/p>\n<p>Bennette says she\u2019s looking forward to further research on the complexities of drug pricing and the tradeoffs in ensuring patents\u2019 access to affordable medications with the goal of fostering pharmaceutical innovation. \u201cI feel very fortunate to be studying this issue at UW. I can walk down the hall and talk with several other faculty members who are interested in this topic, but who all come from different backgrounds and can offer unique perspectives.\u201d<\/p>\n<p>Click to read: <a href=\"https:\/\/www.healthaffairs.org\/doi\/10.1377\/hlthaff.2015.1145\"><em>Steady Increase in Prices for Oral Anticancer Drugs after Market Launch Suggests a Lack of Competitive Pressure<\/em><\/a>.<\/p>\n<h4>Are you interested in the UW Pharmaceutical Outcomes Research &amp; Policy Program?<\/h4>\n<p><a href=\"https:\/\/sop.washington.edu\/department-of-pharmacy\/pharmaceutical-outcomes-research-policy-program-porpp\/phd-program\/\">Click to learn more about our master&#8217;s and doctoral degree offerings.<\/a><\/p>\n<p><a href=\"\/department-of-pharmacy\/department-info\/department-news\/\">Link to Department of Pharmacy archived news<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>UW School of Pharmacy researchers\u2019 found large increases in oral anticancer drugs even in the face of increasing market competition A new study published in the May issue of Health Affairs and authored by UW&#8230;<\/p>\n","protected":false},"author":3,"featured_media":13765,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[34,31],"tags":[],"class_list":["post-13755","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-pharmacy-news","category-sop-news"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.8 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Bennette, Sullivan find cancer drug prices rise rapidly after market launch - School of Pharmacy<\/title>\n<meta name=\"description\" content=\"UW School of Pharmacy researchers\u2019 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