Spending on Prescription Drugs Jumps for 4th Year in a Row

Spending on prescription drugs surged for the fourth consecutive year in 2001, climbing 17.1% as sales of a relatively small number of expensive drugs boosted sales.

Outpatient prescription drug spending totaled $154.5 billion last year, up from $131.9 billion in 2000, according to a study conducted by the Washington-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 9,482 on the retail market were responsible for 62.3% of the $22.5-billion increase in spending last year.Leading the list of drugs contributing to the increase were cholesterol treatments Lipitor and Zocor, arthritis drugs Vioxx and Celebrex, pain reliever OxyContin and antidepressant 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,” said Nancy Chockley, president of the foundation.

She said many of the drugs that led to increased sales were most advertised by their manufacturers to consumers and doctors. Chockley said information about the top-selling drugs is concentrated in the hands of the industry.Also contributing to the rise in spending was the increase in cost of a prescription, which jumped 10.1% to $49.84. And prescriptions dispensed at retail pharmacies rose 6.8% to $3.1 billion.

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

Industry officials said the study reflected that more people were being treated for diseases, and noted how medicines can help avoid more expensive treatments such as surgery. Industry executives also noted that the majority of the top 50 drugs discussed in the study were for diseases and conditions that have large numbers of under-diagnosed patients.