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 That is up from about $1.07 trillion this year, representing a
compound annual growth rate of 4 to 7 percent over the next five
years, the "Global Medicines Use in 2020" report compiled by IMS
Institute for Healthcare Informatics found.
Some 225 new drugs will come to market over the next five years,
about a third aimed at cancer, as well as medicines for rare
diseases, which can carry ultra-high price tags, and treatments for
autoimmune diseases and heart disease, the report said.
The cost will be partially offset by patent expirations expected to
reduce spending on branded medicines by $178 billion, including $41
billion from biologic drugs as cheaper biosimilars become more
widely adopted, the report forecast.
Health system expansions in developing markets, leading to
significantly increased access to cheap generic drugs, will also
drive spending in 2020, according to IMS, which provides
prescription drug use data for the pharmaceutical industry.
By 2020, 4.5 trillion doses of medicine will be dispensed, up 24
percent from 2015, with the average cost just 30 cents a dose, IMS
estimated. Over half of the world's population will consume at least
one medicine per person per day, up from one third of the world in
2005, growth led by India, China, Brazil and Indonesia, the report
predicted.
"We are now getting much more value for every dollar or whatever
currency we spend ... because we can get decades' worth of
innovation, most of it incredibly cheaply because generics are
widely available," said Michael Kleinrock, research director for the
IMS Institute.
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Developed markets will still account for the lion's share of global
spending, about 63 percent, due to higher prices and access to the
newest, most expensive treatments. The nine nations IMS defines as
developed pharmaceutical markets will spend about $880 billion in
2020, an increase of nearly $300 billion over the next five years,
with the United States accounting for some $575 billion.
By 2020, IMS forecasts 36 million people will have been treated with
new medicines for hepatitis C, such as Gilead Sciences' Harvoni,
that virtually guarantee a cure for the serious liver disease.
China, the largest emerging market, will spend about $165 billion in
2020 despite slowing growth.
(Reporting by Bill Berkrot; Editing by James Dalgleish)
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