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Small Improvements in Pharmaceuticals Have Large Positive Impact on Patient Care
and Health Care Spending, Study Finds
Choice in Prescribing Especially Important to Elderly
Patients and Others with Chronic Illness

PHILADELPHIA, PA (July 10, 2001) — The small incremental improvements to existing drugs that make up the majority of the new drug approvals by the FDA each year provide important health benefits to patients, especially elderly patients, according to a study released today by the Center for Pharmaceutical Health Services Research at Temple University.

Newer drugs in a therapeutic class often have fewer side effects, improved drug safety and effectiveness, and are used more easily, which facilitates compliance with prescribed treatments. A wide variety of product alternatives permit treatments to be better tailored to individual patient needs.

"By giving physicians a broad range of medicines we provide them with a 'tool chest' to treat each patient with precision and provide options when particular agents have less than optimal effectiveness or are poorly tolerated," said Dr. Albert Wertheimer, director of the Center for Pharmaceutical Health Services Research at Temple University and the lead researcher on the study. "Even choices in dosage form-tablets versus liquids, or once versus twice daily dosing-can benefit elderly patients who may have special needs or preferences regarding chewing, swallowing, or remembering to take their medications."

In addition to improving health outcomes, products entering the market that represent incremental innovations over their predecessors are often less expensive than existing agents in a therapeutic class. The result is less expensive alternatives long before generic products are available.

New uses for medicines are often discovered as a result of extensive clinical experience, often many years after introduction. For example, tissue plasminogen activator (tPA) was originally developed to treat heart attacks but is now used in stroke victims. Some incremental innovations have been demonstrated to save overall health care costs as well. For example, a study by the National Institute for Neurological Diseases and Stroke found that patients treated with tPA had shorter hospital stays than other patients and were more often discharged to home rather than to institutional care. Although hospital costs for treated patients increased by $1,700 per patient, rehabilitation and nursing home costs were reduced by $6,200, a net savings of $4,500.

"The process of incremental innovation in the pharmaceutical industry mirrors how product development is done in most manufacturing and high tech industries," said Wertheimer. "In fact, most of the top 10 prescription drugs sold in the United States in 1999 were incremental improvements on existing products. Policies that foster incremental innovations stimulate research, broaden access to important therapies and help to promote a competitive market."

According to a recent Johns Hopkins University study, 125 million Americans suffered from chronic illnesses in 2000, and that figure is expected to reach 157 million in 2020, at which time 25 percent of all Americans will be living with multiple chronic conditions, many common results of aging. Most of these conditions are treated by one or more drugs that have seen incremental improvement.

"Individual physical and medical differences increase as people age," said Wertheimer. "As a result, multiple drug options are necessary for safe effective, and individualized therapy, especially for the fastest growing portion of our elderly population, those 86-years-old and older." Dr. Wertheimer points out that "in the current debate over the details of drug programs for the elderly, it is important to keep focused on one key concept-the need to provide a range of incremental drug therapies necessary for appropriate care."

The study was conducted by the Center for Pharmaceutical Health Services Research of Temple University School of Pharmacy, in cooperation with the National Pharmaceutical Council (NPC). The Center conducts externally funded and academic research in treatment outcomes, pharmacoeconomics, and health policy analysis.

Since 1953, NPC has sponsored and conducted scientific, evidence-based analyses of the appropriate use of pharmaceuticals and the clinical and economic value of pharmaceutical innovation. NPC provides educational resources to a variety of health care stakeholders, including patients, clinicians, payers and policy makers. More than 20 research-based pharmaceutical companies are members of the NPC.

The report The Value of Incremental Pharmaceutical Innovation for Older Americans is available online.

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Please direct all media inquiries to Pat Adams, phone (703) 620-6390.