Last updated: January 7, 2025
Introduction
IHEEZO, with the NDC code 82667-300, is an ophthalmic gel containing chloroprocaine hydrochloride, indicated for ocular surface anesthesia. This analysis will delve into the market context, pricing trends, and potential price projections for this drug.
Market Context
Prescription Drug Market Overview
The prescription drug market, particularly in the U.S., has seen significant growth in recent years. Total sales revenues for prescription drugs in the U.S. increased from $582 billion in 2017 to $716 billion in 2022, a 23% increase[3].
International Pricing Comparison
The U.S. stands out with significantly higher average prices for prescription drugs compared to other countries. In 2022, the average price per unit in the U.S. was 5.5 times higher than in the OECD (excluding the U.S.) and 7.7 times higher than in the rest of the world[3].
Pricing Trends
General Pricing Trends in the U.S.
Prescription drug prices in the U.S. tend to increase, with the largest number of price increases occurring in January and July each year. In January 2022, the average price increase was nearly $150 per drug (10%), and in July 2022, it was $250 (7.8%)[2].
Significant Price Increases
Drugs with significant price changes, defined as increases greater than $20 per package or more than 10% within a 12-month period, or any change greater than $500 per package, are common. In 2022, several drugs saw price increases exceeding $20,000 or 500%[2].
IHEEZO Specifics
Indications and Usage
IHEEZO is used for ocular surface anesthesia and is administered by healthcare providers. It is contraindicated in patients with a history of hypersensitivity to chloroprocaine hydrochloride[4].
Dosage and Administration
The drug is supplied as a sterile, clear, colorless to light yellow gel in single-patient-use vials, each containing 24 mg of chloroprocaine in 800 mg of gel[4].
Pricing Analysis
Current Pricing
As a newly approved drug (marketing start date: September 27, 2022), the current pricing of IHEEZO is not yet extensively documented in public databases. However, given its classification as a prescription drug and its specific use case, it is likely to be priced competitively within the ophthalmic anesthesia market.
Price Projections
Given the general trends in prescription drug pricing:
- Short-term Projections: Prices for IHEEZO may follow the typical pattern of increases seen in January and July. A moderate increase of around 5-10% in the first year is plausible, aligning with the average increases observed in 2022[2].
- Long-term Projections: Over the next few years, the price could continue to rise, though at a slower rate. The average price increase in the U.S. prescription drug market between 2017 and 2022 was 14%[3]. Therefore, a long-term projection might see IHEEZO's price increasing by around 10-15% over the next five years.
Market Factors Influencing Pricing
Regulatory Environment
Changes in regulatory policies, such as those related to drug pricing transparency and potential price controls, could impact the pricing strategy for IHEEZO[5].
Competition
The presence of other ophthalmic anesthetics and the potential for generic or biosimilar alternatives could influence pricing. However, as a newly approved drug, IHEEZO may enjoy a period of market exclusivity, allowing it to maintain its pricing power.
Economic Factors
General inflation rates and economic conditions can also affect drug pricing. For instance, the Consumer Price Index (CPI) increase of 8.5% between July 2021 and July 2022 had an impact on drug price increases during that period[2].
Key Takeaways
- Market Growth: The U.S. prescription drug market is growing, with significant revenue increases.
- Pricing Trends: Prices tend to increase in January and July, with average increases around 10% and 7.8%, respectively.
- IHEEZO Pricing: Short-term projections suggest moderate price increases (5-10%), while long-term projections indicate a potential 10-15% increase over five years.
- Market Factors: Regulatory changes, competition, and economic conditions will influence pricing.
FAQs
Q: What is IHEEZO used for?
A: IHEEZO is used for ocular surface anesthesia.
Q: When was IHEEZO approved?
A: IHEEZO was approved and started marketing on September 27, 2022.
Q: How is IHEEZO administered?
A: IHEEZO is administered by healthcare providers as a sterile ophthalmic gel.
Q: What are the potential price increase trends for IHEEZO?
A: Short-term projections suggest a 5-10% increase, while long-term projections indicate a potential 10-15% increase over five years.
Q: What factors influence the pricing of IHEEZO?
A: Regulatory environment, competition, and economic factors such as inflation rates can influence the pricing of IHEEZO.
Sources
- FDA Report: NDC 82667-300 Ophthalmic Gel IHEEZO Drug Codes.
- ASPE Issue Brief: Price Increases for Prescription Drugs, 2016-2022.
- ASPE Issue Brief: Comparing U.S. and International Market Size and Average Pricing for Prescription Drugs, 2017-2022.
- DailyMed: IHEEZO- chloroprocaine hydrochloride ophthalmic gel gel.
- Oregon Department of Consumer and Business Services: Prescription Drug Price Transparency Results and Recommendations.
