IRVING, Texas (BUSINESS WIRE), July 28, 2021 - Vizient, Inc. released its Pharmacy Market Outlook today, forecasting a 3.10% increase in total pharmaceutical spend for hospitals, health systems, academic medical centers, and non-acute providers for Jan. 1, 2022 through Dec. 31, 2022. While the report, an analysis of Vizient member pharmaceutical purchase data, forecasts that oncology will remain the top therapeutic class in spend by Vizient member purchases, it also projects COVID-19 to have a pronounced effect on member drug purchases. A media summary featuring highlights of the Vizient Pharmacy Market Outlook can be accessed here: https://www.vizientinc.com/PharmacyMarketOutlookHighlights
Oncology medications, which make up nearly 25% of Vizient member spend, will increase 3.25%, with numerous new molecular entities approved by the FDA. In addition, it forecasts rheumatoid arthritis drug adalimumab will continue to be ranked first in terms of spending until biosimilar competition ultimately arrives, while spending on diabetes products such as insulin will increase by 2.63%.
The Pharmacy Market Outlook also reflects on the impact COVID-19 has had on medication use spend. During the period of data analysis for this Outlook, April 2020 through March 2021, remdesivir was the third highest spend drug overall among Vizient members and the number one infectious disease related medication. Given the uncertainty of the continued progression of COVID-19 infection rates, providers must continue to devote attention to the array of infectious disease related medications.
“Throughout the course of last year, we have learned much about the SARS-CoV-2 virus, which has evolved the available treatment options for COVID-19,” said Dan Kistner, group senior vice president, pharmacy solutions, Vizient. “The continuing emergence of variants, combined with significant vaccine hesitancy, is creating doubt that we will have a quick return to normal and has led Vizient to increase its projections on overall spending on related treatments.”
Specialty pharmaceuticals remain a dominant force on current and anticipated drug spend. Vizient’s Pharmacy Market Outlook projects specialty pharmaceutical pricing to grow at a rate of 4.68%. This elevated growth is driven by two elements, the continued approval of highly specialized, novel drug therapies and ongoing price increases for adalimumab prior to facing biosimilar competition.
The latest Pharmacy Market Outlook is the first to include diabetes medications, which are projected to increase 2.63%. Novel diabetes drugs are gaining more indications, not only in the management of blood glucose, but also for the prevention of cardiovascular events and other disease complications. When combined with the increasing prevalence of the disease, health systems are expected to see expanded use of these products in their patient populations.
The continued expansion of indications of novel diabetes treatments and their increased use will likely result in greater expense. However, the expectation is that biosimilar competition may finally bring definitive competition to this market, another opportunity providers must continue to monitor for possible implementation.
The Vizient Pharmacy Market Outlook is an important resource for pharmacy leaders in developing annual budget projections for their health systems. Vizient conducts the pricing analysis biannually to provide insight on factors driving pricing and practice changes in the pharmaceutical industry. Access the full report here: https:/info.vizientinc.com/pharmacy-market-outlook
About Vizient, Inc.
Vizient, Inc. provides solutions and services that improve the delivery of high-value care by aligning cost, quality and market performance for more than 50% of the nation’s acute care providers, which includes 97% of the nation’s academic medical centers, and more than 20% of ambulatory care providers. Vizient provides expertise, analytics and advisory services, as well as a contract portfolio that represents more than $110 billion in annual purchasing volume, to improve patient outcomes and lower costs. In 2021, Vizient acquired Intalere, which expanded its footprint with ambulatory and rural acute care providers. Vizient has earned a World’s Most Ethical Company designation from the Ethisphere Institute every year since its inception. Headquartered in Irving, Texas, Vizient has offices throughout the United States. Learn more at www.vizientinc.com.