Erythromycin Price Trend and Forecast

Regional Price Overview

Get the latest insights on price movement and trend analysis of Erythromycin (DDGS) in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East & Africa).

Erythromycin Price Trend for the Q1 of 2024

The pricing patterns of drugs such as erythromycin have undergone a number of changes since Q4 of 2023, and thus, the challenges persisted in Q1 of 2024. The drug pricing, often opaque, is typically based on the average wholesale price (AWP) minus discounts adjusted by pharmacy benefit managers (PBMs). However, generic drug pricing based on AWP can vary widely, making it difficult to assess the fluctuations in its market dynamics. Additionally, AWP increases often outpace discounts, resulting in price hikes of antibacterial medications such as erythromycin.

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The National Average Drug Acquisition Cost (NADAC), therefore, emerged as a more accurate reflection of retail pharmacy drug costs in the past few quarters in the North American markets. However, while simpler pricing models are being adopted, their effectiveness in generating economic pricing values for consumers remains uncertain.

Concerns also arose regarding potential cost-shifting from the persistent Medicare negotiations, which further altered the pricing trajectory of erythromycin in the American markets. Despite potential challenges, the emergence of clearer pricing structures signifies a significant shift in the prescription drug landscape and might benefit the erythromycin pricing trajectory in the next quarters.

Analyst Insight

According to Procurement Resource, the price trend of Erythromycin is expected to rise in the next quarter as the global surge in the pricing of certain medications from April 1 and the rise in the cost of production will escalate the pace of northward movement of erythromycin prices.

Erythromycin Price Trend for the October - December of 2023

Given a 14% medical inflation rate, the Indian population grapples with substantial healthcare expenses, creating a chronic economic burden. This underscores the need for comprehensive healthcare solutions, including capping the cost of essential and non-essential drugs to provide better access to the general populace.

Hence, in view of the overall 5-6% hikes in the domestic pharmaceutical sector, the Supreme Court asked the government to disclose its mechanism for controlling life-saving and essential drug prices addressing concerns about super-profits, exclusion of critical medicines, and insufficient consultation. In order to ensure affordability and control the recent price hikes, the Indian National Pharmaceutical Pricing Authority (NPPA) has brought 33 fixed-dose combination drugs under regulation in order to curb medical inflation and pharmaceutical prices, including those of antibiotics like Erythromycin.

In the US domestic market, the Inflation Reduction Act, which aims to lower drug costs, requires rebates if prices rise faster than inflation. It emphasizes fair pricing for drugs and aims to negotiate lower prescription prices. However, companies like Merck, Bristol-Myers Squibb, and Johnson & Johnson are resisting the Biden's administration drug price negotiation program.

Multiple lawsuits challenging the program's constitutionality are in progress, with the industry arguing against unprecedented constraints on drug prices. Recently, pharmaceutical companies planned to raise prices on over 500 drugs, including Erythromycin, in January 2024. The expected hikes precede the Biden Administration's publication of discounted prices for ten high-cost drugs.

Analyst Insight

According to Procurement Resource, the price trend of Erythromycin and other pharmaceuticals are likely to remain under strain in the coming quarter, given the current tiff between pharmaceutical giants and the US administration over the Inflation Reduction Act. While legal experts predict prolonged battles, the administration's aggressive stance on drugs adds complexity to the ongoing disputes.

Erythromycin Price Trend for the July - September of 2023

Erythromycin is one of the most used types of antibiotics in the medical world. Since erythromycin is a generic drug, various brands and companies have it in different packaging and compositions. It is produced by the soil bacterium Streptomyces erythraeus, and the mode of action is by killing bacteria by stopping its protein production.

Growing bacterial resistance against erythromycin is becoming a challenge for the healthcare world, but the consumption of erythromycin is still at a high level. During the discussed period of Q3’23, the prices wavered at the existing high levels, and narrow-ranged fluctuations were observed. Owing to its essential nature of requirement, the current inflation and interest rates promoted the sellers to increase their quotations in order to cushion their profits. Overall, the market remained anchored during the said time.

Analyst Insight

According to Procurement Resource, the erythromycin price trend are likely to fluctuate within a narrow range going forward, given the current pricing and market fundamentals.

Erythromycin Price Trend for the First Half of 2023

The price trend of erythromycin followed an inclining trajectory in the US and European region in the first two quarters. The market activities of erythromycin were supported by growth in sales of pharmaceuticals and other related end-user industries. The pressure of inflation also eased out during this time, which resulted in the rise of confidence of consumers that, in turn, supported the positive movement of consumption rates.

The rise in demand also eased out the increasing inventory levels, and with a crunch in the supply, many producers only supplied erythromycin for export orders, which was another reason for the rise in the price trend of erythromycin. The overall growth in the cost of energy production due to the ongoing Russia-Ukraine crisis further escalated the growth of the erythromycin price trend.

Analyst Insight

According to Procurement Resource, the price of Erythromycin is estimated to rise with the high demand from the end-user industries and lower rates of production.

Procurement Resource provides latest prices of Erythromycin. Each price database is tied to a user-friendly graphing tool dating back to 2014, which provides a range of functionalities: configuration of price series over user defined time period; comparison of product movements across countries; customisation of price currencies and unit; extraction of price data as excel files to be used offline.