Sector News

Global drug spend to reach $1.4 trillion

November 18, 2015
Life sciences

Total global spending on prescription drugs could reach $1.4 trillion by 2020, according to a new report.

The ‘Global Medicines Use in 2020’ report from IMS Institute for Healthcare Informatics says that increased patient access to medicines across the world and high-priced drugs for chronic diseases will result in a compound annual growth rate of four to seven percent over the next five years.

It adds that the average cost per dose will be 30 cents by 2020, and 4.5 trillion doses of medicine will be dispensed, an increase of 24 percent from 2015.

The report also predicts that around 255 new drugs will come to market over that time, about a third of which will be for the treatment of cancer. The cost of these new treatments will be partially offset by increasing patent expirations which could reduce spending on branded medicines by $178 billion.

The total spend on drugs this year is estimated to be about $1.07 trillion.

“We are now getting much more value for every dollar we spend because we can get decades’ worth of innovation, most of it incredibly cheaply because generics are widely available,” commented Michael Kleinrock, research director for the IMS Institute.

By George Underwood

Source: Pharma Times

comments closed

Related News

May 15, 2022

Novo Nordisk and Flagship Pioneering announce a strategic collaboration to create a portfolio of transformational medicines

Life sciences

The companies will explore opportunities to apply Flagship’s innovative bioplatforms – an ecosystem that currently comprises 41 companies – to scientific challenges in disease areas within cardiometabolic and rare diseases and initiate research programmes based on these.

May 15, 2022

BD, Babson set sights on bringing simple blood collection into the home

Life sciences

BD is expanding its long-running partnership with the blood collection company Babson Diagnostics. The two companies have been working together since 2019 on a device that can gather small volumes of blood from the capillaries in the fingertip without requiring any specialized training, and beginning with a focus on supporting primary care in retail settings.

May 15, 2022

CSL’s $11.7B Vifor buy, 2021’s biggest biopharma M&A deal, hits antitrust delay

Life sciences

Wednesday, Australian biotech CSL said (PDF) the regulatory review of its $11.7 billion acquisition of Switzerland’s Vifor Pharma will take “a few more months,” suggesting it won’t be able to close the transaction by June 2022 as previously expected.