Formulary Advantages in Type 2 Diabetes: Impact of Current and Future DPP-IV Inhibitors and GLP-1 Analogues on Advantaged Reimbursement Status for Key Brands

Type 2 diabetes currently affects almost 24 million in the United States and the prevalence of the disease is set to grow at approximately 3% per year over the next five years. As biopharmaceutical companies seek to increase diagnosis and treatment rates, the drug-treated population in the United States will grow by about 5% per year over the next five years. Despite the growth of the treated population and the launches of several emerging therapies, the type 2 diabetes market will shrink over this same timer period, because of the looming patent expiry of Takeda's Actos (pioglitizone). Makers of novel therapeutics treating type 2 diabetes that will launch in the next few years must thus face a crowded market dominated by two oral brands (Actos and Merck's Januvia [sitagliptin]), increasing numbers of generics, and payer pressure to reduce costs associated with this disease.

Using tiering and restrictions data from Fingertip Formulary, as well as insight from 40 pharmacy directors, this report determines the key trends in reimbursement of antidiabetics and insulins, drivers of these trends, and how stakeholders can capitalize on future shifts in coverage to steal share from the competition.