Prescription drug spending surges for fourth consecutive year

Friday, March 29th 2002, 12:00 am

By: News On 6

NEW YORK (AP) _ Spending on prescription drugs surged for the fourth consecutive year, climbing 17.1 percent in 2001, boosted by sales of a relatively small number of expensive drugs.

Outpatient prescription drug spending totaled $154.5 billion in 2001, up from $131.9 billion in 2000, according to a study conducted by the Washington D.C.-based National Institute for Health Care Management Research and Educational Foundation, a nonprofit group that conducts research on health care issues.

The study found that just 50 drugs out of a total of 9,482 on the retail market, were responsible for 62.3 percent of the $22.5 billion increase in spending last year. Sales of those drugs rose 34.3 percent in 2001 compared to a 9.3 increase for all other drugs. The average price of a prescription for one of the 50 best-selling drugs was $71.56 while the average price for other drugs was $40.11.

Leading the list of drugs contributing to the increase were cholesterol treatments Lipitor and Zocor, arthritis drugs Vioxx and Celebrex, pain reliever OxyContin and anti-depressant Celexa.

``Once again we see that the rise in pharmaceutical expenditures is led by the increased use of a relatively small number of expensive drugs,'' says Nancy Chockley, president of the foundation.

She said many of the drugs were the ones most advertised by their manufacturers to both consumers and doctors.

Chockley said information about the top-selling drugs is concentrated in the hands of the pharmaceutical industry.

``We should be able to be smarter about how we purchase a handful of expensive medicines,'' she said.

Chockley said also that numerous of the 50 drugs are blockbusters with more than $1 billion in sales so they're vital to manufacturers' profits. She said drug companies must be prevented from extended patenting and introducing new drugs that aren't different from their predecessors.

``Drug companies spend more of an effort these days maintaining blockbuster drugs,'' she said.

Also contributing to the rise in spending was the increase in cost of a prescription which jumped 10.1 percent to $49.84. Moreover, the number of prescriptions dispensed at retail pharmacies rose 6.8 percent to $3.1 billion.

Antidepressants remained the top-selling category of drug in 2001, with sales up 20.2 percent to $12.5 billion. Anti-ulcer drugs were the second biggest selling category with sales up 14.4 percent to $10.8 billion.

Pharmaceutical industry officials said the study reflects that more people are being treated for diseases, and noted how medicines can help avoid more expensive treatments such as surgery.

Industry executives also noted hat the majority of the top 50 drugs discussed in the study are for diseases and conditions that have large numbers of under-diagnosed patients. In a statement, the Pharmaceutical Research and Manufacturers of America, the industry trade group, stated that only 6 million of the 17 million people suffering from depression are receiving treatment.

It said that 28.3 million American are not receiving medication for their high cholesterol.

Alan Holmer, president of the trade group, pointed out that 11 of the 12 members of the foundations boards are made up of officials from Blue Cross and Blue Shield.

He said he understands that the foundation and Blue Cross and Blue Shield want to cut costs and restrict access to medicines, but he believes the increase in spending is a positive.

``It means more people are getting the treatment they need, and in many cases, avoiding more costly and more invasive treatments,'' Holmer said.