US Rx Drug Prices Rose 2.6% In 1994

At the wholesale level, US prescription drug prices saw a 2.6% increase during 1994, reports the Bureau of Labor Statistics in its Producer Price Index. This compares with a rise of 4.1% for the top 500 Rx drugs sold in community retail pharmacists, quoted by the National Association of Chain Drug Stores quarterly Prime Index (Marketletter January 9).

The BLS 1994 figures confirm the downward trend of US pharmaceutical prices over the past five years. In 1989, the PPI for prescription medicines was up 9.5%, in 1990 it rose 8.1%, in 1991 it was 7.9% higher, in 1992 it rose 6.8% and in 1993 it increased by just 3%.

According to the Pharmaceutical Research and Manufacturers of America, the lower rate of drug price rises is the result of competitive, market-driven cost containment, which has been seen throughout the 1990s. Moreover, it says, companies have made pledges to keep price rises down due to pressure from Congress and the prospects of health care reform.