Pharmaceutical Industry Growth Rebounds in Five-Year Outlook - Pharmaceutical Technology

Latest Issue
PharmTech

Latest Issue
PharmTech Europe

Pharmaceutical Industry Growth Rebounds in Five-Year Outlook



Global spending on medicines is expected to meet the $1 trillion threshold in 2014 and reach $1.2 trillion by 2017, according to a recent report by the IMS Institute for Healthcare Informatics. The report, The Global Use of Medicines: Outlook through 2017, found that growth in global spending on medicines increased 2.6% to $965 billion in 2012, and is forecast to grow at a 3–6% compound annual rate over the next five years.

IMS projects a gradual increase in global medicine spending growth during the next five years. Annual growth in spending is expected to rise from 2–3% in 2013 to 5–7% in 2017, the highest pace of growth since 2009. The single largest impact on growth levels is the continuing effect of many blockbuster drugs coming off patent and an increase in lower-cost generic alternatives. In addition, the gradual return of global growth in gross domestic product to more than 4% by 2017 will contribute to an upward trend in medicine spending levels.

Specialty medicines will be the single largest contributor to branded drug spending growth through 2017, according to IMS. Spending on specialty medicines is expected to reach $230–240 billion in 2017, up 38% from the $171 billion spent in 2012. In developed markets, growth in spending for specialty drugs is expected to increase 30% during the next five years to reach $190–200 billion. In pharmerging markets, the use of specialty medicines is limited, but spending is expected to rise by nearly 90% through 2017, to $40–50 billion annually.

“As we pass the fifth anniversary of the global economic slowdown, and with many countries moving toward universal health coverage, we expect to see continued divergence in growth rates between the pharmerging and developed markets,” said Murray Aitken, executive director of the IMS Institute for Healthcare Informatics, in IMS press release. “Austerity measures aimed at medicine budgets along with the growing availability of lower-cost generics will lead to annual spending growth of 1–4% among the markets of North America, Europe, and Japan. In contrast, pharmerging nations will experience 10–13% spending growth.

Source: IMS

ADVERTISEMENT

blog comments powered by Disqus
LCGC E-mail Newsletters

Subscribe: Click to learn more about the newsletter
| Weekly
| Monthly
|Monthly
| Weekly

Survey
What role should the US government play in the current Ebola outbreak?
Finance development of drugs to treat/prevent disease.
Oversee medical treatment of patients in the US.
Provide treatment for patients globally.
All of the above.
No government involvement in patient treatment or drug development.
Finance development of drugs to treat/prevent disease.
23%
Oversee medical treatment of patients in the US.
14%
Provide treatment for patients globally.
7%
All of the above.
47%
No government involvement in patient treatment or drug development.
9%
Jim Miller Outsourcing Outlook Jim MillerOutside Looking In
Cynthia Challener, PhD Ingredients Insider Cynthia ChallenerAdvances in Large-Scale Heterocyclic Synthesis
Jill Wechsler Regulatory Watch Jill Wechsler New Era for Generic Drugs
Sean Milmo European Regulatory WatchSean MilmoTackling Drug Shortages
New Congress to Tackle Health Reform, Biomedical Innovation, Tax Policy
Combination Products Challenge Biopharma Manufacturers
Seven Steps to Solving Tabletting and Tooling ProblemsStep 1: Clean
Legislators Urge Added Incentives for Ebola Drug Development
FDA Reorganization to Promote Drug Quality

Click here