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    Top 5 Things to Know About Future Drug Spending

    The United States and other countries will continue to spend more on specialty medications, and less will be spent on brand-name drugs, according to a new forecast. In addition, spending on drugs in the U.S. will grow at a much slower rate, according to the Quintiles IMS Institute report, “Outlook for Global Medicines Through 2021: Balancing Cost and Value.”

    THE GROWTH RATE for U.S. spending on medicines will decline by half, from 12% in 2015 to between 6% and 7% in 2017. Plus, prescription drug spending is forecast to grow between 6% and 9% through 2021, the report found. “The decline reflects the end of hepatitis C treatment-driven growth and greater impact of patent expiries—including the introduction of biosimilars—following a period in which fewer brands faced new generic competition,” said QuintilesIMSInstitute in a press statement.  Plus, U.S. growth in 2014 and 2015 was driven by historically high price increases for both brand drugs and generics.

    U.S. BRAND DRUG PRICES will increase at a slower rate, due both to competition from generics and Congressional backlash over soaring brand prices. “Brand prices will increase at 8% to 11% — more slowly than the 12% to 15% in the past three years, and with fewer outlier major price increases, as these have become unsustainable in light of high-profile media and political attention.”


    Christine Blank
    Contributing Editor Christine Blank is a freelance writer based in Florida.


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