Global drug spending is projected to approach $1.1 trillion [one thousand one hundred billion] dollars by 2015, however, reflecting a slowdown in the 3-6% compound annual growth rate.
All this against an annual growth rate of 6.2% over the past five years. These are the forecasts of the IMS Institute for Healthcare Informatics in the study 'The Global Use of Medicines: Outlook Through 2015'. Low levels of growth in drug spending in the United States, the impact of the expiration of several major drug patents in developed markets, continued strong demand in emerging markets for low-cost products, and regulatory changes in several countries are among the key factors affecting future growth of the industry.
In particular, spending on branded products in developed markets will remain at the same level in 2015 as in 2010. But globally, the market share of designer brands, which fell from 70% in 2005 to 64% in 2010, will decline further by 2015, to 53%. There will be growth for these products in emerging markets, yet 80 cents of every dollar spent on drugs in these markets in 2015 will be reserved for generics.
Also by 2015, the IMS Institute expects spending on biosimilars, off-patent copies of biologic drugs, to exceed $2 billion annually.
Barbara Di Chiara – May 19, 2011 – Pharmakronos
