Ever wonder what’s driving the cost of pharmacy benefits? A lot of factors contribute to the increase,but consider the following:
The general trend for FDA new drug approvals is continuing to rise. According to FierceBiotech, the FDA approved 59 new drugs in 2018 eclipsing the previous high of 53 in 1996. Drugs are being approved more quickly as well. Pharma Exec reports that with FastTrac status, the average drug was approved in 250 days compared to 300 days in 2015. FierceBiotech also reported that the number of new drugs in the pipeline is also up. In 2018, there were 7201 Investigational New Drugs (IND) applications on the books of the FDA up 25% from just a decade ago. An IND is a request for authorization from the FDA to administer an investigational drug or biological product to humans.
Further FierceBiotech reports that the FDA is anticipating a surge in cell and gene therapies and has plans to hire 50 new clinical reviewers. Labiotech reports that 65% of the products now come from biotechnology companies up from just 10% two decades ago.
The effective management of pharmacy benefit plans is even more important today. To learn how CobaltRx can help you address the growing problem created by the escalation of pharmacy benefit costs, call us at 225-927-1940.