QuintilesIMS recently released an analysis which analyzes the big drivers of American’s spending on medicine.
PhRMA’s Holly Campbell outlined four of the main bullet points (which can be seen below) in the QuintilesIMS report:
- “Prices for existing brand-name medicines declined by an average of 2.5 percent annually over the last six years, primarily due to patent expirations and generic competition.
- Biopharmaceutical company revenues increased by 3.9 percent per year on average between 2010 and 2016 after discounts and rebates. Increases were primarily due to the use of innovative new medicines and wider utilization of existing medicines, and not price increases.
- Growth in prices for existing brand-name medicines are projected to decline by an average of 1 to 4 percent annually through 2021 after accounting for discounts, rebates and generic competition.
- Biopharmaceutical company revenues on brand-name and generic medicines are projected to grow between just 2 and 5 percent on average annually through 2021 after discounts and rebates.”