US Rx Wholesale Prices "Up 1.8% In 1996"

US wholesale prescription drug prices rose 1.8% in 1996, below the 2.1%overall inflation rate reported by the government for wholesale prices, says IMS America. Branded drugs' retail prices to pharmacies rose 3.9%, but these were offset by a 13.8% fall in generics' retail prices. (See Marketletter February 24 for 1996 data on US prescription drug sales to pharmacies).

Of the top five prescription drugs, Glaxo Wellcome's Zantac (ranitidine) rose 0.3%. Its average wholesale price is about $99 per month; retail price varies with local competition and producer discounts. Merck & Co's Prilosec (omeprazole) fell 0.9% (AWP about $109), Lilly's Prozac (fluoxetine) rose 3.7% (AWP about $70), Amgen's Epogen (epoetin alfa) fell 1.8%, costing $24-$120 per injection based on dosage, and Pfizer's Zoloft (sertraline) rose 3.1% (AWP about $63).

IMS reports overall price rises of 3.1% for Glaxo Wellcome, 3.2% for Johnson & Johnson, 4.1% for American Home Products, 0.9% for Bristol-Myers Squibb and 2.6% for Merck & Co. Most firms saw double-digit percentage rises in dollar sales, with much growth coming from volume rather than price hikes. Unit volume grew 6%-7% in 1996, the highest such rise in a long time, said IMS marketing vice president Robert Merold.