Last updated: December 31, 2024
Introduction
The drug with the NDC code 70436-0155 is a promethazine hydrochloride and dextromethorphan hydrobromide oral solution, manufactured by Slate Run Pharmaceuticals, LLC. This analysis will delve into the market dynamics, pricing strategies, and potential price projections for this specific drug.
Drug Composition and Usage
The promethazine hydrochloride and dextromethorphan hydrobromide oral solution is a clear, yellow-colored liquid with a pineapple menthol odor. It contains 6.25 mg of promethazine hydrochloride and 15 mg of dextromethorphan hydrobromide per 5 mL, along with 7% alcohol[1].
Market Context
Pharmaceutical Market Trends
The pharmaceutical market is highly competitive and influenced by various factors, including research and development costs, raw material prices, regulatory requirements, and market demand. For generic drugs like the one in question, pricing is often driven by the need to balance profitability with affordability and competition from other generic manufacturers[3].
Generic Drug Pricing
Generic drugs typically experience lower price volatility compared to branded drugs. However, they can still be subject to price increases due to factors such as increases in active pharmaceutical ingredients (APIs), manufacturing costs, and distribution expenses. The median price increase for generic drugs in recent reports has been around 19.9%[5].
Manufacturer Overview
Slate Run Pharmaceuticals, LLC
Slate Run Pharmaceuticals is a manufacturer of various pharmaceutical products, including both generic and branded drugs. The company's portfolio includes a wide range of medications, indicating a diversified market presence[4].
Pricing Strategy
Current Pricing
The current pricing for the promethazine hydrochloride and dextromethorphan hydrobromide oral solution is not explicitly stated in the available sources. However, it is common for generic drugs to be priced competitively to ensure market share.
Cost Components
The pricing of this drug would be influenced by several cost components:
- Manufacturing Costs: This includes the cost of APIs, other raw materials, and the manufacturing process itself.
- Distribution Costs: Costs associated with getting the drug from the manufacturer to the consumer.
- Research and Development: Although this is a generic drug, some R&D costs may still be incurred to maintain or improve the product.
- Marketing and Sales: While direct-to-consumer marketing is often minimal for generic drugs, some promotional activities may still be undertaken to inform healthcare professionals and distributors about the product[2].
Price Projections
Factors Influencing Price Projections
- Raw Material Costs: Increases in API and other raw material costs can lead to price increases.
- Market Competition: The presence of other generic versions of the same drug can keep prices competitive.
- Regulatory Environment: Changes in regulatory requirements or transparency laws can impact pricing strategies.
- Economic Conditions: General economic conditions, such as inflation, can also influence drug pricing.
Potential Price Increases
Given the median price increase for generic drugs of around 19.9%, it is plausible that the price of the promethazine hydrochloride and dextromethorphan hydrobromide oral solution could increase by a similar percentage in the near future. However, this would depend on the specific cost dynamics and market conditions.
Example Scenario
If the current wholesale acquisition cost (WAC) for this drug is hypothetically set at $10 per unit, a 19.9% increase would result in a new WAC of approximately $11.99 per unit.
Market Dynamics and Competition
Generic Market Competition
The generic drug market is highly competitive, with multiple manufacturers often producing the same or similar drugs. This competition helps keep prices in check but can also lead to occasional price spikes if there are supply chain disruptions or significant increases in raw material costs.
Consumer and Healthcare Provider Behavior
Consumers and healthcare providers often seek the most cost-effective options while ensuring the quality and efficacy of the medication. This demand for affordability can pressure manufacturers to maintain competitive pricing.
Regulatory and Transparency Aspects
Drug Price Transparency
Regulatory bodies are increasingly focusing on drug price transparency to help control costs and ensure fairness in the market. Reports and transparency laws, such as those requiring the disclosure of price increases, can influence how manufacturers set and adjust their prices[5].
Conclusion
The pricing of the promethazine hydrochloride and dextromethorphan hydrobromide oral solution, with the NDC code 70436-0155, is influenced by a variety of factors including manufacturing costs, market competition, and regulatory requirements. While exact price projections are challenging without current pricing data, it is reasonable to expect that the price could follow the general trend of generic drug price increases, potentially rising by around 19.9% in response to market and cost pressures.
Key Takeaways
- Market Competition: The generic drug market is highly competitive, which helps maintain competitive pricing.
- Cost Components: Manufacturing, distribution, R&D, and marketing costs all play a role in determining the final price.
- Regulatory Environment: Transparency laws and regulatory requirements can impact pricing strategies.
- Price Projections: Potential price increases could follow the median increase for generic drugs, around 19.9%.
FAQs
What are the active ingredients in the NDC 70436-0155 drug?
The active ingredients are promethazine hydrochloride and dextromethorphan hydrobromide.
Who manufactures the NDC 70436-0155 drug?
The drug is manufactured by Slate Run Pharmaceuticals, LLC.
What factors influence the pricing of generic drugs?
Pricing is influenced by manufacturing costs, distribution costs, R&D expenses, marketing costs, and market competition.
How do regulatory requirements impact drug pricing?
Regulatory requirements, such as transparency laws, can influence pricing by requiring the disclosure of price increases and cost components.
What is the potential price increase for generic drugs like NDC 70436-0155?
The potential price increase could be around 19.9%, following the median increase for generic drugs.
Sources
- DailyMed: PROMETHAZINE HYDROCHLORIDE AND DEXTROMETHORPHAN HYDROBROMIDE ORAL SOLUTION solution.
- Minnesota Department of Health: New Prescription Drug Price Reporting.
- New York State Department of Financial Services: Drug Price Increases Report - November 2024.
- FindACode: Slate Run Pharmaceuticals - List of Drugs - NDC Labeler/Manufacturer.
- Oregon Department of Consumer and Business Services: Prescription Drug Price Transparency Results and Recommendations.
