The average cost per patient per year in 2016 for an orphan drug was $140,443 versus $27,756 for a non-orphan drug. The average drug price has increased year on year for both orphan and non-orphan drugs since 2012. The median price differential between an orphan and non-orphan drug in 2016 was 5. 5 compared to 9. 8 in 2012.
The median price of orphan drugs and non-orphan drugs has increased by a factor of 1.3 and 2.3 since 2012 respectively.
USA selling orphan drugs is correlated (R2 = 0.77) to the number of patients treated in 2016. A similar analysis of the Top 10 selling orphan drugs that treated fewer than 10,000 patients confirms a closer correlation (R2 = 0.94). This analysis confirms industry perceptions that smaller patient groups allow a pricing premium to be achieved versus non-orphans. Products such as Gleevec support the notion of an innovation premium for drugs that create a step change in treatment options and therapy outcomes.
Soliris confirms the pricing power resulting from indications with the fewest number of patients.
100 orphan and non-orphan drugs were ranked by USA sales for 2016.
Prices for products in the US are sourced from Medicare Part B, NADAC, FSS and Medicaid. Availability of a price point determines choice of source.
The source is kept consistent across years to reflect a clear trend in pricing.