 Spectrum --
July 2008
 Introduction:
Drugs for disorders of the central nervous system (CNS) form
the second-ranked therapeutic area in terms of global pharmaceutical sales,
reaching total retail sales in 2006 of $73.4 billion--equivalent to 19% of total
pharmaceutical sales. However, pharmaceutical companies are subject to intense
pressure from payers to moderate their prices. Additionally, physicians and
patients face ever-more-daunting reimbursement barriers. Our analysis of the
five-year pricing trend for 40 best-selling CNS therapies (20 neurology drugs
and 20 psychiatric agents) shows that prices generally rise steadily in the
United States but typically remain stable or decline in other major markets.
Get the Answers You Need to Shape Your Strategy:
 From 2003 to 2007, the U.S. prices of a
sample of 20 best-selling neurology drugs increased by an average of 44%. Which
other major market saw an increase in average prices for neurology drugs over
this period? How did prices in this therapeutic area evolve in other markets?
From 2003 to 2007, the U.S. prices of
a sample of 20 leading psychiatric drugs increased by an average of 33%. What
were the pricing trends for psychiatric drugs in other markets over this
period? How did the expiration of patents on several blockbuster agents affect
overall pricing trends for psychiatric drugs?
Leading pharmacy benefit management companies (PBMs) in the
United States report very varied spending trends for best-selling CNS drug
classes in 2007. Which drug classes experienced strong growth in utilization
and average prescription costs? Which drug classes underwent a decline in
average prescription costs?
The U.K. government has recently announced plans to reform its
pharmaceutical pricing system and to implement a new constitution for the
National Health Service. How will the reforms affect drug prices in the
United Kingdom? What will the government do to promote pharmaceutical
innovation?
Scope:
Geographic pricing trends: price evolution from 2003 to
2007 of 20 best-selling neurology drugs and 20 leading psychiatric agents in
the United States, France, Germany, Italy, Spain, the United Kingdom, and
Japan.
Drug class pricing trends: price evolution from 2003 to
2007 of leading antiepileptic drugs, anti-dementia drugs, Parkinson’s disease
therapies, triptans, multiple sclerosis therapies, antidepressants,
antipsychotics, and treatments for attention-deficit/hyperactivity disorder.
Reimbursement trends in major markets: leading PBMs’
CNS drug benefit trends in the United States; promoting increased use of
generics in France; prescribing quotas for certain drug classes in Germany; new
pharmaceutical budget in Italy; amendments to the Spanish reference pricing
system; price cuts in the United Kingdom; latest biennial price revisions in
Japan.
Outlook and implications for the pharmaceutical industry:
contrasting pricing trends in the United States and other major markets; lower
price sensitivity in the biologics and neurology markets; impact of blockbuster
patent expiration and generics competition; rebate trends in the United States;
use of reference pricing in Europe; price cuts in some major markets.
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