Following a 2008 request by Senators Charles Schumer (D-NY) and Amy Klobuchar (D-MN), the Government Accountability Office (GAO) released this report January 11, investigating the rising cost of prescription drugs.  The GAO found that 416 brand-name drugs had 100 to 499 percent price increases between 2000 and 2008.  The 416 drugs, which comprise about 0.5 percent of all brand-name drugs, were largely nervous system, anti-infective, and cardiovascular drugs; however, Eli Lily’s schizophrenia drug, Zyprexa, was also among them.  The report analyzed possible reasons for the price increases and outlined the general impact of such increases for public and private payers.

From the report:

More than half of the brand-name drug products that had extraordinary price increases were in just three therapeutic classes—central nervous system, anti-infective, and cardiovascular. These therapeutic classes include drugs used to treat conditions such as fungal or viral infections, and heart disease. About half of the extraordinary price increases were for brand-name drug products that were purchased from drug manufacturers or wholesalers, repackaged, and resold in smaller packages to health care providers such as hospitals or physicians. However, some drug repackagers serve a niche in the drug market, and therefore may have a small share of the market in a therapeutic class. The majority of all extraordinary price increases were for drugs priced less than $25 per unit; however, a full course of treatment for some of these drugs could total several thousand dollars.

Full report: Brand-Name Prescription Drug Pricing (PDF | 565.28 KB)

US Government Accountability Office. (2010).  Brand-name prescription drug pricing. GAO 10-201.