Overview of the Product
The Good Neighbor Pharmacy Day Time oral solution, identified by the National Drug Code (NDC) 24385-005, is a human over-the-counter (OTC) drug distributed by AmerisourceBergen. The primary components of this solution are acetaminophen, dextromethorphan hydrobromide, and phenylephrine hydrochloride, making it a common remedy for daytime cold and flu symptoms[5].
Market Context
Pharmaceutical Market Trends
The pharmaceutical market is undergoing significant changes, with a focus on advanced therapies and cost management. For instance, the summer 2024 Pharmacy Market Outlook by Vizient Inc. highlights a projected overall drug price inflation rate of 0.00% for the period from January 1, 2025, to December 31, 2025. This suggests a relatively stable pricing environment for many pharmaceutical products, including OTC drugs like the Good Neighbor Pharmacy Day Time solution[3].
Regulatory Environment
The FDA's National Drug Code (NDC) Directory plays a crucial role in tracking and regulating drug products, including OTC medications. The directory ensures that all drugs, including those labeled under the NDC 24385-005, are properly listed and comply with FDA regulations. This regulatory framework helps maintain market stability and transparency[4].
Pricing Mechanisms
Average Manufacturer Price (AMP) and Unit Rebate Amount (URA)
For drugs participating in the Medicaid Drug Rebate Program (MDRP), the pricing is calculated based on the Average Manufacturer Price (AMP) and the Unit Rebate Amount (URA). The 340B ceiling price, which is relevant for covered entities, is calculated as AMP minus URA, and then adjusted for package size and case pack size. While this mechanism primarily affects prescription drugs, it sets a precedent for pricing transparency and regulation in the broader pharmaceutical market[2].
OTC Pricing Dynamics
OTC drugs, such as the Good Neighbor Pharmacy Day Time solution, are generally priced based on market demand and competition. Since these products are widely available and often have multiple generic or brand alternatives, their prices tend to be more stable and less subject to significant fluctuations.
Price Projections
Short-Term Projections
Given the stable market conditions and the absence of significant inflation projections for 2025, it is likely that the price of the Good Neighbor Pharmacy Day Time solution will remain relatively stable. The Vizient Pharmacy Market Outlook's projection of a 0.00% overall drug price inflation rate supports this expectation[3].
Long-Term Considerations
In the long term, prices could be influenced by several factors, including changes in raw material costs, manufacturing efficiencies, and market competition. However, for a well-established OTC product like the Good Neighbor Pharmacy Day Time solution, these factors are likely to result in minimal price adjustments.
Competitive Landscape
The market for daytime cold and flu remedies is highly competitive, with numerous brand and generic options available. This competition helps keep prices in check, as consumers have multiple alternatives to choose from. The Good Neighbor Pharmacy Day Time solution competes with other products like Basic Care Daytime Cold and Flu, which also contains acetaminophen, dextromethorphan hydrobromide, and phenylephrine hydrochloride[5].
Consumer Behavior and Demand
Consumer demand for cold and flu remedies is generally consistent, with peaks during flu seasons. This predictable demand helps manufacturers and distributors manage inventory and pricing strategies effectively. The stability in demand contributes to stable pricing for products like the Good Neighbor Pharmacy Day Time solution.
Key Takeaways
- Stable Pricing Environment: The overall drug price inflation rate for 2025 is projected to be 0.00%, indicating stable prices for OTC drugs.
- Regulatory Compliance: The FDA's NDC Directory ensures that all drug products, including OTC medications, comply with regulatory requirements.
- Competitive Market: The market for daytime cold and flu remedies is highly competitive, which helps maintain stable prices.
- Predictable Demand: Consistent consumer demand for cold and flu remedies supports stable pricing and inventory management.
FAQs
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What are the primary components of the Good Neighbor Pharmacy Day Time solution?
- The primary components are acetaminophen, dextromethorphan hydrobromide, and phenylephrine hydrochloride[5].
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How is the pricing for OTC drugs like the Good Neighbor Pharmacy Day Time solution determined?
- Pricing is determined based on market demand, competition, and regulatory compliance.
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What is the projected overall drug price inflation rate for 2025?
- The projected overall drug price inflation rate for 2025 is 0.00%[3].
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How does the FDA regulate OTC drugs?
- The FDA regulates OTC drugs through the National Drug Code (NDC) Directory, ensuring compliance with FDA regulations[4].
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What factors could influence the long-term pricing of the Good Neighbor Pharmacy Day Time solution?
- Factors include changes in raw material costs, manufacturing efficiencies, and market competition.
Sources
- FDA Report: NDC 24385-110 Vaginal Cream Good Neighbor Pharmacy Clotrimazole 3.
- HRSA: NDC Product Details - Log into 340B OPAIS.
- Vizient Inc.: Pharmacy Market Outlook Summer 2024.
- FDA: National Drug Code Directory.
- FDA Report: NDC 24385-005 Oral Solution Good Neighbor Pharmacy Day Time.
