The Effect of Market Competition on the Price of Topical Eye Drops

ABSTRACT

Purpose

To describe the relationship between the number of Federal Drug Administration (FDA)-approved manufacturers and the price change of generic and branded topical eye drops.

Methods

Retrospective analysis of topical eye drop medications with formulations listed in the FDA Orange Book and the National Average Drug Acquisition Cost database from 2013 to 2017.

Results

The most frequently prescribed generic topical drugs were glaucoma medications (34%), antimicrobials (32%), anti-inflammatories (24%), mydriatics (5%), and anesthetics (5%). The most frequently prescribed branded topical drugs were anti-inflammatories (45%), glaucoma medications (32%), antimicrobials (21%) and dry eye medications (3%). From 2013 to 2017, generic eye drops had a median price decrease of 20% (IQR 32%) while branded eye drops had a median price increase of 44% (IQR 28%) (P < .001). A significant inverse association was identified between the price change of generic eye drops and the total number of all manufacturers (r = −.41, P = .010), generic drug manufacturers (r = −.32, P = .0496), and alternative branded drug manufacturers (r = −.57, P = .002). There was no significant association between the price change of branded eye drops and number of manufacturers. Glaucoma (r = −.58, P = .039) and anti-inflammatory (r = −.69, P = .047) eye drops also had significant inverse associations with the number of generic manufacturers.

Conclusion

From 2013 to 2017, the price of generic eye drops decreased whereas the price of branded eye drops increased. Market competition was significantly inversely associated with price changes of generic eye drops but not branded eye drops.

KEYWORDS:

• Pharmaceutical
• pharmacoeconomics
• drug price
• eye drops
• market competition

FINANCIAL INTERESTS

Dr. Sridhar is a consultant for Alcon, Oxurion, and Regeneron. Dr. Yannuzzi is a consultant for Alimera Science, Genentech, and Novartis.

AUTHOR CONTRIBUTIONS

All authors participated in acquisition, analysis, and interpretation of data as well as manuscript writing and revisions.

SUPPLEMENTARY MATERIAL

Supplemental data for this article can be accessed on the publisher’s website.

Additional information

Funding

Bascom Palmer Eye Institute received funding from the NIH Core Grant P30EY014801, Department of Defense Grant #W81XWH-13-1-0048, and a Research to Prevent Blindness Unrestricted Grant. The sponsors or funding organizations had no role in the design or conduct of this research.