The Influence of US Drug Price Dynamics on Cost-Effectiveness Analyses of Biologics

•Previous studies have revealed that accounting for a chronic drug’s future loss of market exclusivity can improve the results of cost-effectiveness analyses. Nevertheless, no studies have examined the extent to which US price increases during the period of exclusivity may counterbalance this effect.•Using frameworks from previous Institute for Clinical and Economic Review biologic treatment assessments, we found that yearly price increases of 3% or higher in the years before a drug’s loss of exclusivity more than counterbalanced the effect of post–loss of exclusivity price reductions, resulting in an overall increase in the cost per quality-adjusted life-year gained.