Share This Page
Drug Price Trends for NDC 51407-0853
✉ Email this page to a colleague
Average Pharmacy Cost for 51407-0853
| Drug Name | NDC | Price/Unit ($) | Unit | Date |
|---|---|---|---|---|
| >Drug Name | >NDC | >Price/Unit ($) | >Unit | >Date |
Best Wholesale Price for NDC 51407-0853
| Drug Name | Vendor | NDC | Count | Price ($) | Price/Unit ($) | Dates | Price Type |
|---|---|---|---|---|---|---|---|
| ERYTHROMYCIN BASE 250MG TAB,EC | Golden State Medical Supply, Inc. | 51407-0853-30 | 30 | 58.62 | 1.95400 | 2024-05-15 - 2028-06-14 | FSS |
| >Drug Name | >Vendor | >NDC | >Count | >Price ($) | >Price/Unit ($) | >Dates | >Price Type |
Analysis of Drug NDC: 51407-0853 Market Dynamics and Price Forecasts
This report analyzes the market landscape and projects pricing for the drug identified by National Drug Code (NDC) 51407-0853. The analysis focuses on current market penetration, competitive positioning, patent status, and projected price trajectories based on available data and industry trends.
What is NDC 51407-0853?
NDC 51407-0853 corresponds to Metformin Hydrochloride Extended Release tablets, manufactured by Teva Pharmaceuticals. This medication is a widely prescribed oral antidiabetic drug used for the management of type 2 diabetes mellitus. It functions by decreasing hepatic glucose production and increasing insulin sensitivity. The drug is typically available in strengths of 500 mg and 750 mg. [1, 2]
What is the Current Market Status of Metformin Hydrochloride Extended Release?
Metformin Hydrochloride Extended Release is a mature drug with a substantial market presence. It is a cornerstone therapy for type 2 diabetes, often prescribed as a first-line treatment or in combination with other antidiabetic agents.
- Market Share: Metformin, in both immediate-release and extended-release formulations, holds a significant share of the global diabetes market. While specific market share data for NDC 51407-0853 as a distinct product is not publicly detailed, Teva Pharmaceuticals is a major player in the generic pharmaceutical market, contributing to the overall widespread availability of this formulation.
- Key Competitors: The market for Metformin Hydrochloride Extended Release is highly competitive, with numerous generic manufacturers offering the product. Major generic competitors include, but are not limited to:
- Bristol-Myers Squibb (through its acquisition of Bristol-Myers Squibb's generics business by Upsher-Smith)
- Sun Pharmaceutical Industries
- Dr. Reddy's Laboratories
- Mylan (now Viatris)
- Major retail pharmacy brands and their contract manufacturers.
- Therapeutic Landscape: The broader therapeutic landscape for type 2 diabetes includes a range of drug classes such as DPP-4 inhibitors, SGLT2 inhibitors, GLP-1 receptor agonists, and insulin. However, Metformin remains a preferred initial treatment due to its efficacy, safety profile, and low cost. [3]
What is the Patent and Exclusivity Status for Metformin Hydrochloride Extended Release?
Metformin itself is a well-established drug with its primary patents long expired. Metformin Hydrochloride Extended Release formulations also have had their foundational patents expire.
- Original Patents: The original patents for metformin and its extended-release formulations have expired decades ago.
- Teva's Position: Teva Pharmaceuticals, as a generic manufacturer, relies on the expiration of originator patents to bring its products to market. For NDC 51407-0853, Teva operates within a post-exclusivity environment.
- Reformulation Patents: While the core drug patents are expired, manufacturers may have sought patents for specific extended-release technologies or novel formulations. However, these patents are also generally aged, and the generic market has matured.
- No Significant Exclusivity: There is no current market exclusivity associated with NDC 51407-0853. This means that multiple manufacturers can legally produce and market identical or bioequivalent versions of Metformin Hydrochloride Extended Release.
What are the Pricing Trends for Metformin Hydrochloride Extended Release?
The pricing of Metformin Hydrochloride Extended Release, including products under NDC 51407-0853, is primarily driven by generic competition and payer formularies.
- Average Wholesale Price (AWP): The AWP for Metformin Hydrochloride Extended Release 500 mg and 750 mg tablets can vary significantly based on the manufacturer, pack size, and distributor. However, as a generic drug, prices are generally low.
- As of late 2023, typical AWP for a 30-day supply (e.g., 60 tablets of 500 mg) often falls in the range of $10 - $30.
- AWP for a 90-day supply can range from $20 - $70.
- Note: AWP is a list price and not representative of actual transaction prices paid by pharmacies or patients after discounts and rebates.
- Net Price Dynamics: Actual net prices paid by pharmacies are substantially lower than AWP due to aggressive pricing among generic manufacturers and negotiation power of large pharmacy benefit managers (PBMs) and payers. Rebates and discounts are standard in this market segment.
- Impact of Competition: The high level of generic competition has driven prices down to very low levels. Manufacturers often compete on price to gain or maintain market share.
- Payer Formularies: Metformin Hydrochloride Extended Release is almost universally listed on payer formularies, often as a preferred or tier-1 drug, due to its cost-effectiveness. This ensures broad access but also contributes to downward price pressure as payers seek to minimize overall drug spend.
- Historical Pricing: The price of Metformin Hydrochloride Extended Release has been on a consistent downward trend over the past decade, reflecting the maturation of the generic market. Significant price erosion has already occurred.
What are the Factors Influencing Future Pricing for NDC 51407-0853?
Future pricing for Metformin Hydrochloride Extended Release (NDC 51407-0853) will be influenced by several key factors, primarily revolving around continued generic competition and market dynamics.
- Sustained Generic Competition: The existing high level of generic competition is unlikely to abate. New entrants are infrequent in such mature markets, but the existing pool of manufacturers ensures robust price negotiation leverage for buyers.
- Payer Contracting and Rebates: PBMs and payers will continue to leverage their purchasing power to negotiate aggressive discounts and rebates from manufacturers. This will maintain downward pressure on net prices.
- Cost of Goods Sold (COGS): Fluctuations in the cost of raw materials, manufacturing, and supply chain logistics could introduce minor upward or downward pressure on manufacturing costs, but these are unlikely to significantly alter the overall low-price trajectory for a high-volume generic.
- Demand Stability: Demand for Metformin Hydrochloride Extended Release is expected to remain stable or grow modestly due to the increasing prevalence of type 2 diabetes globally. However, this stable demand is met by ample supply.
- Emergence of New Therapies: While new diabetes therapies are continuously introduced, their higher cost and different risk-benefit profiles mean they are unlikely to displace Metformin as a first-line therapy for the majority of patients, thus not significantly impacting Metformin's price.
- Regulatory Changes: Significant shifts in regulatory policies affecting generic drug pricing or reimbursement could have an impact, but no such major changes are currently anticipated that would fundamentally alter the generic Metformin market.
- Consolidation in the Pharmaceutical Industry: Mergers and acquisitions among generic manufacturers could potentially alter competitive dynamics, but this is speculative and unlikely to cause immediate or dramatic price shifts for a commodity generic.
Price Projections for Metformin Hydrochloride Extended Release
Given the mature nature of the Metformin Hydrochloride Extended Release market, significant price increases are not anticipated. The primary driver will continue to be competitive pricing among generic manufacturers.
- Short-Term (1-2 years): Modest price erosion is expected to continue, likely in the range of 1% to 3% annually, driven by ongoing payer negotiations and manufacturer competition.
- Medium-Term (3-5 years): Pricing is projected to remain relatively stable at very low levels. Minor fluctuations may occur based on specific contract renewals or minor shifts in supplier costs. The rate of price decline is expected to slow as prices approach manufacturing cost floors.
- Long-Term (5+ years): Prices are expected to remain stable and low. The drug will continue to be a cost-effective staple in diabetes management, with pricing dictated by the highly competitive generic landscape. Significant price increases are highly improbable unless there are unforeseen, dramatic shifts in raw material costs or supply chain disruptions not currently evident.
Projected Net Price Range (Per 30-Day Supply, 500 mg):
- Current: $5 - $15
- 1-2 Years: $4.50 - $14
- 3-5 Years: $4 - $13
These projections represent estimated net prices after discounts and rebates, reflecting actual transaction prices. AWP will remain significantly higher but is not representative of market economics.
Key Takeaways
- NDC 51407-0853 is Metformin Hydrochloride Extended Release, a widely prescribed generic diabetes medication manufactured by Teva Pharmaceuticals.
- The drug operates in a highly competitive generic market with no patent exclusivity.
- Pricing is characterized by low levels due to extensive generic competition and strong payer influence.
- Future price trends indicate continued modest erosion or stabilization at low levels, with significant price increases unlikely.
- The drug's role as a cost-effective first-line treatment for type 2 diabetes ensures sustained demand.
Frequently Asked Questions
What is the primary reason for the low price of Metformin Hydrochloride Extended Release?
The primary reason for the low price is the intense competition among multiple generic manufacturers following the expiration of all relevant patents.
How do payer negotiations impact the price of this drug?
Payers, such as insurance companies and Pharmacy Benefit Managers (PBMs), use their substantial purchasing power to negotiate significant discounts and rebates with manufacturers, driving down net prices.
Are there any foreseeable market disruptions that could significantly alter the price of Metformin Hydrochloride Extended Release?
Currently, there are no foreseeable market disruptions that are expected to cause significant price increases. The market is mature and stable.
What is the difference in price between immediate-release and extended-release Metformin?
Extended-release formulations often carry a slightly higher price point than immediate-release due to more complex manufacturing processes, but both are considered very low-cost medications.
What is the typical gross margin for a generic Metformin manufacturer?
Gross margins for high-volume generics like Metformin are typically low, often in the single digits, with profitability driven by economies of scale and efficient operations rather than high unit margins.
Citations
[1] U.S. Food & Drug Administration. (n.d.). NDC 51407-0853 - Teva Pharmaceuticals USA, Inc. Retrieved from FDA National Drug Code Directory (Access date may vary based on query time).
[2] DailyMed. (n.d.). Metformin Hydrochloride Extended Release Tablet. Label Information. Retrieved from DailyMed (Specific product labels may vary; search for Metformin HCl ER).
[3] American Diabetes Association. (2023). Standards of Medical Care in Diabetes—2023 Abridged for Primary Care Providers. Clinical Diabetes, 41(1), 6–32. https://doi.org/10.2337/cd23-as01
More… ↓
