IMS Health Finds Global Cancer Drug Spending Crossed $100 Billion Threshold in 2014

Earlier diagnosis, longer treatment duration and increased effectiveness of drug therapies are contributing to rising levels of spending on medicines for cancer care. According to a new report released  by the IMS Institute for Healthcare Informatics, total global spending on oncology medicines — including therapeutic treatments and supportive care — reached the $100 billion threshold in 2014, even as the share of total medicine spending of oncologics increased only modestly. 

Growth in global spending on cancer drugs — measured using ex-manufacturer prices and not reflecting off-invoice discounts, rebates or patient access programs — increased at a compound annual growth rate (CAGR) of 6.5% on a constant-dollar basis during the past 5 years. Oncology spending remains concentrated among the US and five largest European countries, which together account for 66% of the total market, while the rising prevalence of cancer and greater patient access to treatments in pharmerging nations continues to grow and now accounts for 13% of the market.

The study — Developments in Cancer Treatments, Market Dynamics, Patient Access and Value: Global Oncology Trend Report — is a comprehensive review and updated perspective on the current and future clinical landscape, marketplace dynamics for oncology-related pharmaceuticals, and patient access to medicines and their value.

Targeted therapies have dramatically increased their share of the total global oncology spend, rising 14.6% CAGR during the past 5 years with steady increases across all regions. At the same time, payers and national health systems have intensified their scrutiny of the value of these medicines relative to their incremental benefits over existing treatments, with cost effectiveness assessments frequently resulting in limited patient access to these drugs. Access and reimbursement issues are likely to become more complicated in coming years as individual and combination oncology medicines address multiple cancer types and patient populations  with varying dosage and clinical value.

“The increased prevalence of most cancers, earlier treatment initiation, new medicines and improved outcomes are all contributing to the greater demand for oncology therapeutics around the world,” said Murray Aitken, IMS Health senior vice president and executive director of the IMS Institute for Healthcare Informatics. “Innovative therapeutic classes, combination therapies and the use of biomarkers will change the landscape over the next several years, holding out the promise of substantial improvements in survival with lower toxicity for cancer patients.”

The report’s key findings include the following:

• Global oncology market continues to experience steady growth. 
• Clinical outcomes are improving for major cancers. 
• Patient access to cancer drugs varies across all markets. 
• Patients are engaging social media and online networks throughout their cancer journey. 

The full version of the report, including a detailed description of the methodology, is available at www.theimsinstitute.org.