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Multiple Sclerosis Drug Category Heats Up; So Does Spending

 
• By Jessica Merrill

MS drug spending is skyrocketing due to premium-priced new drugs and defensive price hikes across the category, making the therapeutic area a management priority for payers. Insurers are largely relying on aggressive contracting with manufacturers to manage the category, but new launches are unlikely to secure preferred formulary placement without comparative safety and efficacy data.

With the launch of two new drugs in 2010 and several more therapies expected in the next two years, the multiple sclerosis drug market holds good news for patients and physicians who have a wider range of treatment options to choose from. But drug spending in the category is also skyrocketing due to premium-priced new drugs and defensive price hikes across the category. The therapeutic area has become a priority for cost containment among managed care.

Nonetheless, given the serious nature of the disease and in the absence of low-cost generic alternatives, payers’ hands are somewhat...

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