Health and Healthcare
How the Cancer Drug Market Will Rise to $150 Billion by 2020
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It is almost certain that anyone who reads now knows someone who has been treated for cancer. In many cases it is friends and family, or co-workers or people you run into routinely. Cancer is a killer. It is also a huge business for the biotech and pharmaceutical players who treat cancer.
A new study from IMS Health has projected that the global market for cancer treatments rose to $107 billion in 2015. While the cost of this is said to be driven by a record level of innovation, the projected costs are set to skyrocket. IMS Health is projecting that annual growth in the oncology drug market is expected to be 7.5% to 10.5% through 2020, which puts the drug market’s future value at a whopping $150 billion.
IMS showed that over 20 tumor types are being treated with one or more of the 70 new cancer treatments that have been launched in the past five years. Many of these drugs are not even yet available to patients in most countries.
That figure of $107 billion for 2015 was an increase of 11.5% on a constant-dollar basis versus 2014. This measurement is using ex-manufacturer prices, but it also does not reflect off-invoice discounts or other rebates and patient access programs.
There may be at least more hints of negotiated health care costs here. IMS noted that payers are expected to tighten their negotiation stance with manufacturers, and that they will adopt new payment models to drive greater value.
Additional data points from the study are as follows:
This report was effectively released right before the key ASCO conference this weekend.
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