Tuesday, 12 Nov 2019

You are here

US Drug Spending Will Rise Steadily Thru 2021

Reuters has reported that U.S.spending on prescription drugs in 2016 increased by 5.8 percent over 2015 levels to $450 billion based on list prices, and by 4.8 percent to $323 billion when adjusted for discounts and rebates.

A forecast from Quintiles/IMS indicates that the cost of prescription medicines in the United States will increase 4-7 percent through 2021, reaching nearly $600 billion.

QuintilesIMS (previously known as IMS) compiles data for the pharmaceutical industry, has reduced its projections due to fewer new medicines being approved in 2016.

Taking likely manufacturer discounts and rebates into account, spending would grow 2-5 percent to $375 billion to $405 billion in 2021, as net price increases for patent-protected branded drugs slows, the report said.

The rising cost of drugs is becoming a major issue with politicians and insurers, for both generic and branded medicines.

The number of new drug approvals by the FDA has declined to 22 new medicines in 2016, which is down from 45 in 2015, 

The projected estimates taking into account that new drug approvals will rebound in 2019 and after, as QuintilesIMS estimates 40 to 45 new brand launches per year through 2021.

 

Spending on pain medicines declined 1 percent, while prescription growth was seen with chronic therapies, such as those for hypertension and mental health.

  

Disclosures: 
The author has no conflicts of interest to disclose related to this subject

Add new comment

More Like This

Mallinckrodt Receives SEC Subpoena

Reuters reports that Mallinckrodt Plc has received a subpoena from the U.S. Securities and Exchange Commission for documents related to the drugmaker’s lawsuit against the U.S. Department of Health and Human Services (HHS).

ACR Responds to CY2020 Medicare Physician Fee Schedule Proposed Rule

Rheumatology leaders commend CMS for proposing E/M code changes and urge agency to make additional changes to final rule.d

Parenteral Out-Performs Oral Weekly Methotrexate

A systematic review in PLOS suggests that parenteral MTX therapy is more successful than oral MTX in achieving optimal disease activity control. 

ACR Survey Shows Half of Patients Cannot Afford Treatments

Americans living with rheumatic disease face significant healthcare challenges, according to a national patient survey released this week by the American College of Rheumatology. More than 1,500 U.S. adults living with rheumatic disease responded to the survey, which asked a range of questions related to healthcare access, affordability and lifestyle. Key findings include that even though 90 percent of respondents reported having health insurance coverage, nearly 60 percent said they had difficulty affording their medications or treatments in the past year.

Medical Use of Cannabis in 2019

JAMA has published an overview of cannabis and its medical uses. Although nearly 10% of cannabis users in the United States report using it for medicinal purposes, there is insufficient evidence to support the use of medical cannabis for most conditions for which its use is advocated or advised. Nevertheless, there is increase in favoring the public availability of cannabis, largely for the management of more than 50 medical conditions.