Rising Drug Costs: Trend to Watch 2017

2017 Trends: Rising Drug Costs

The cost of prescription drugs has been rising rapidly since 2010, and will likely continue to rise in 2017.

Frank Magliochetti

The largest drug maker in the United States, Pfizer Inc., raised prices on 133 of its U.S. brand name products in 2015. More than three-quarters of the increases were 10 percent or more. Daraprim, the antiparasitic commonly used to treat toxoplasmosis, went from $13.50 to $750 per pill overnight in September of 2015. The price of Epipens skyrocketed 500 percent, rising from $97 in 2007 to $600 in 2016 for a two-pack set of the emergency treatment for anaphylaxis.

The total net spending on prescription drugs has grown to $309.5 billion annually, according to IMS Health, including discounts, within the past year. This makes prescription drugs the fastest growing segment of the nation’s healthcare economy. At 12.2 percent, 2014 spending on drugs dwarfs the overall frank-magliochetti-2017-medical-trendsgrowth rate of healthcare spending and the rate of spending growth on physician and hospital care. The price of drugs, rather than utilization, is the predominant driving factor in this increased drug spending.

Spending on drugs rose 8.5 percent in 2015 but total prescriptions dispensed increased by a mere 1 percent. The pharmaceutical price inflation was 7.2 percent in 2015, according to the Bureau of Labor Statistics (BLS) Producer Price Index (PPI), significantly outpacing both general inflation and medical inflation at 0.7 percent and 2.7 percent, respectively.

2017 Trends towards Higher Prices

2017 will probably see more increases in drug prices, and the rises costs will likely have a significant effect on consumers and healthcare providers. Price hikes will likely affect employees and young retirees in 2017. The results of Segal’s 2017 Health Plan Cost Trend Survey suggest prescription drug costs will rise 11.6 percent in 2017 for active employees and retirees under the age of 65, on top of 11.3 percent in 2016.

That is a huge leap for most Americans. More than 48 percent of all people living in the U.S. reportcdc-frankmagliochettireport taking at least one prescription drug in the previous month, according to statistics provided by the Centers for Disease Control and Prevention (CDC), and more than 20 percent of Americans use three or more prescription medications. Health plan cost trends have slowed, according to the Segal survey, but they continue to outpace average wage increases and inflation by more than three time.

Patients carry an increasingly heavy financial burden when it comes to drug costs, and so do hospitals faced with difficult decisions regarding the allocation of scarce resources. Inpatient drug spending rose 23.4 percent on average, according to a report by theAmerican Hospital Association (AHA), and 38.6 percent per individual hospital admission. The report details the experience of one hospital that reported that last year’s price increases for just four common drugs were equivalent to the annual salaries of 55 full-time nurses there. Drug prices will likely continue to rise in unpredictable ways while reimbursement amounts from payors will probably increase only a small amount. Hospitals will continue the struggle of balancing resources in response to changes in the drug market.

The rise in specialty drug/biotech medications will be especially high in 2017 at 18.7 percent. While specialty drugs make up less than 1 percent of all medications, the 100 insurance providers responding to the Segal’s survey said that specialty drugs now account for 35 percent of total projected prescription drug cost increases for the next year.

Source

http://www.bloomberg.com/news/articles/2015-10-02/pfizer-raised-prices-on-133-drugs-this-year-and-it-s-not-alone

http://www.imshealth.com/en/about-us/news/ims-health-study-us-drug-spending-growth-reaches-8.5-percent-in-2015

http://www.bls.gov/ppi/ppidr201512.pdf

https://www.segalco.com/media/2716/me-trend-survey-2017.pdf

http://www.aha.org/content/16/aha-fah-rx-report.pdf

http://www.cdc.gov/nchs/fastats/drug-use-therapeutic.htm

 

Frank Magliochetti is Managing Partner for Parcae Capital.

  • North Andover, Massachusetts

This column of posts is directed at the Healthcare Industry.  Frank plans to release new sites dedicated to the industry  – .  He currently assists companies who are building, restructuring, transforming and resurrecting there business’s. An example of his client base are, Xenetic Biosciences , IPC Medical Corp, Just Fellowship Corp, Environmental Services Inc., Parsons Post House LLC, ClickStream Corporation as well as having a business talk radio show; The Business Architect on the URBN network.

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Medical 3D Printing

Advancements in Medical 3D Printing

Three-dimensional (3D) printing has been around since the 1980s, when Chuck Hull patented the mechanical process of printing successive layers of material to create objects. Known as stereolithography or additive manufacturing, the process quickly spread beyond industry into a number of sectors, including medicine.
3d-printing-and-health_frankmagliochettireportA 3D printer is similar to a standard computer printer except that, instead of ink, liquid plastic, metal, polyvinyl alcohol, and other materials flow through its print nozzles. 3D printers are unique in that the process can create three-dimensional solid-state objects made from a variety of materials. Printed objects can be as simple or as intricate as needed by the designer without requiring extra steps in the manufacturing process.
In 1999, surgeons grew a human bladder by layering human bladder cells onto 3D printed scaffold then later transplanted the bladder into the patient that donated the cells. In 2002, scientists used bio-ink replicating kidney tissue to print a functioning kidney.
There have been several major advancements since the earliest days of medical 3D printing. While it is still not possible to print out an entire organ suitable for transplant, it is possible to use three-dimensional printing to create scaffold for growing organs, grow tissues for laboratory testing, make skin grafts for burn victims, print sheets of cardiac tissue that beats like a heart, and more.
State of the Art Medical 3D Printing
Scientists from Harvard University recently made the first 3D printed organ-on-a-chip with integrated sensing, which allows researchers to collect reliable data during laboratory studies. These organs-on-chips, also known as medical-3d-printing_frankmagliochettireportmicrophysiological systems, closely match the properties of a specific disease or individual patient cells suitable for use in the laboratory. These chips simplify data acquisition and allow researchers to change and customize the study design system, opening new avenues for in vitro tissue engineering, toxicology and drug screening research.
Other researchers use direct laser writing to shape and form 3D printed undifferentiated stem cells to create complex 3D structures for various biomedical applications. Another company recently released a realistic-feeling 3D printed arm modelstudents can use to learn how to suture skin. The company, San Draw, had previously released a 3D printed arm model suitable for practicing injections. The 3D printed skin simulates the anatomy and feel of real human skin to improve student training.
3D printing presents nearly unlimited potential in the production of surgical instruments, including forceps, hemostats, scalpel handles, clamps, and even surgical smoke evacuators. 3D printed surgical tools come out of the 3d-printing_medical-frankmagliochettireportprinter completely sterile and ready to use, saving both time and money in sterilization, packaging and storage. Printed tools also cost one-tenth as much as stainless steel tools. 3D printing could therefore boost surgery access in low-income areas and reduce the risk of infection in areas with limited access to sterilizers.
Researchers can print out and expose various body tissues to chemicals and other substances to study the reaction of toxins on healthy tissue. Now scientists can print out cancer cells and other types of disease cells to study how tumors grow and develop, and to evaluate the effects of various treatments on those printed cells.
Research and development of medical 3D printing will likely accelerate as scientists find new uses for the additive manufacturing process and manufacturers learn new techniques for making medical and surgical products. 3D printers will certainly become more commonplace in the surgical suite and in laboratories in the coming years.

Source
https://3dprintingindustry.com/3d-printing-basics-free-beginners-guide/history/
http://www.nature.com/nmat/journal/vaop/ncurrent/full/nmat4782.html
https://www.researchgate.net/publication/309393081_3D_microfabrication_of_complex_structures_for_biomedical_applications_via_combination_of_subtractiveadditive_direct_laser_writing_and_3D_printing
https://3dprint.com/152558/san-draw-medical-suture-training/
https://3dprint.com/6652/3d-print-medical-tools/

Frank Magliochetti is Managing Partner for Parcae Capital.

  • North Andover, Massachusetts

This column of posts is directed at the Healthcare Industry.  Frank  plans to release a new site dedicated to the industry.  He currently assists companies who are building, restructuring, transforming and resurrecting there business’s. An example of his client base are, Xenetic Biosciences , IPC Medical Corp, Just Fellowship Corp, Environmental Services Inc., Parsons Post House LLC, ClickStream Corporation as well as having a business talk radio show; The Business Architect on the URBN network.

frankmagliochetti_ParcaeCapital

Genome Editing – CRISPR

CRISPR- Genome Editing:

Frank Magliochetti Report:   CRISPR

CRISPR trials just may be one the most important healthcare industry breakthroughs of this generation.  How these breakthroughs affect the overall picture of bio/pharma will be interesting to stay focused on.

Frank Magliochetti

Almost every year, a new disease is introduced in the world which affects the population of our country. It would be wrong to say that people living in rural areas may be more prone to catch diseases than those who are living in the city. The fact is that no matter where you live or how Frank-Magliochetti_crisprhard you try to protect yourself from the outside world, there are some in-house diseases that may catch up to you.

Once such disease that can strike anyone at any time is cancer which arises through our genetics.   A disease that in some cases runs down from generation to generation which may strike no matter what we may do to help prevent it.  It is something we all dread.

A study conducted on genetic based cancer diseases was conducted in the US and finally was granted access for testing on humans on June 21st.   The NIH (National Institute of Health) gave the green light to start testing the CRISPR-Cas9 trial on humans so that help from T Cells could be enlisted to protect the body.

To understand the trial, first, one needs to understand what exactly CRISPR-Cas9 is. CRISPR (Clustered Regularly Interspaced Short Palindromic Repeats) is a drug derived from Streptococcus pyogenes, which enabled the researchers to make permanent mutations. This introduces double stranded healing breaks in cells to activate the repair pathways in a human body. They adapt immunity in certain archaea and bacteria, which allow organisms to invade and eliminate genetic material.

This disease was discovered in 1989 but until 2007 its symptoms were unknown. 2016 has brought new hope for people to live a healthy life. The trial will be funded by Sean Parker, a tech entrepreneur who has a $250 million dollar cancer treatment center; The Parker Institute for Cancer Immunotherapy.

There have been other trials conducted but the problem with them was that the T Cells, which were reintroduced to a person’s body were not that effective, however, they did kill the NY-ESO-1, the T Cells stopped proliferating and became less effective. crispr-magliochetti

There are many hospitals all over the world that are holding CRISPR trails. Some trials were started at the beginning of August while others are set to start in September.

Hospitals such as Massachusetts General Hospital located in Boston have been conducting tests on genome editing since 2013. This is one of the oldest hospitals in Boston and gets close to 100,000 patient visits per year. There are even chances that MGH affiliated laboratories will also conduct genome editing trials.

Many more hospitals based in Boston have announced that with proper funding, they will start genome editing trials in 2017. Since the trials are so expensive, scientists will pick patients who are immune to Cas9 enzyme.

The discovery and trials of CRISPR is one of the best advancements in medical history. Though the patients for the trial will be chosen in small numbers, people living in fear that their life may end after four or five years due to a genetic illness like Leukemia may now have new hope of living a healthy and happy life.

The content below was aggregated from a Boston Globe opinion piece by Jim Kozubek please click the link to head to the official site to read the rest of the post.

https://www.bostonglobe.com/ideas/2016/09/03/crispr-and-capitalists/uX8NuPsva5L2iNI2DCBArJ/story.html

CRISPR and the capitalists

CRISPER-CAS9 IS A method of manipulating DNA that is transforming medicine and science. It is both popular (“molecule of the year!”) and dangerous (researchers have received threats from GMO activists). It is also wildly lucrative.

The first clinical trial of these tiny molecular scissors may begin by the end of the year. Meanwhile, two camps, the Broad Institute — where I held affiliation for nearly three years — and University of California at Berkeley and researcher Emmanuelle Charpentier, are locked in a patent showdown that will play out in early 2017 with perhaps a billion dollars at stake.
Society treats science as a public trust by funding it through taxes, but perhaps it shouldn’t do so indefinitely. One of the subliminal things that the CRISPR-Cas9 legal showdown tells us is that academic-industry partnerships may one day be mature enough that science may begin to forgo its tax base.

In 1943, President Franklin D. Roosevelt directed his wartime chief of research, Vannevar Bush, to find a way to extend funding after the war. In a document with soaring language entitled “Science the Endless Frontier,” Bush laid out the argument for robust federal funding engines through the National Institutes of Health, the creation of the National Science Foundation, and what would become a briskly expanding network of research scientists throughout the United States.
Read More – CLICK HERE

Frank Magliochetti is Managing Partner for Parcae Capital.

  • North Andover, Massachusetts

This column of posts is directed at the Healthcare Industry.  Frank plans to release a new site dedicated to the industry.  He currently assists companies who are building, restructuring, transforming and resurrecting there business’s. An example of his client base are, Xenetic Biosciences , IPC Medical Corp, Just Fellowship Corp, Environmental Services Inc., Parsons Post House LLC, ClickStream Corporation as well as having a business talk radio show; The Business Architect on the URBN network.

frankmagliochetti_ParcaeCapital