Global spending on prescription drugs is projected to reach nearly $1.5 trillion by 2021, according to a report from Quintiles IMS Holding. This figure, based on wholesale pricing, represents an almost $370 billion increase from the estimated drug spending for 2016.
Here are five other report findings.
1. When considering anticipated discounts and rebates to payers, total drug spending in 2021 will be closer to $1 trillion, according to the report.
2. The U.S. is projected to account for about $675 billion of global drug spending in 2021.
3. Analysts forecast the annual global drug spending growth will be 4 percent to 7 percent over the next five years — mostly fueled by new treatments for cancer, diabetes and autoimmune diseases — marking a decline from the almost 9 percent growth rate seen in 2014 and 2015.
4. The report also details a slowdown in U.S. price hikes for branded drugs, projecting annual wholesale price increases of 8 percent to 11 percent and net prices rising 2 percent to 5 percent, according to the report.
5. Analysts expect an average of 45 new drug launches every year through 2021. While many of these new drugs will have high costs, rising drug prices could be slightly offset by a large amount of drugs losing their patents in the next five years, according to the report.
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