Research Triangle Park, North Carolina–(business wire) — total pharmaceutical spending and global demand is expected to grow to about $1.9 trillion by 2027 over the next five years, according to a new report titled . Global Use of Medicines Outlook 2023 – 2027 From the IQVIA Human Data Science Institute.
An underlying growth rate of 3% to 6% in spending has been driven by new drug launches and widespread use of recently launched brands, despite efforts by payers to limit budgets, and
“COVID-19 continues to impact the global pharmaceutical market and is estimated to continue to expand the pharmaceutical market through 2027, mainly due to vaccines. ” “However, there are great uncertainties over the next few years as the global COVID-19 pandemic moves into a new phase in which vaccines and treatments are available but not used consistently. ”
Key highlights of the report include:
- Increased drug use: Medication use, as measured by defined daily doses, has increased by 36% over the past decade due to increased access to medicines. However, growth is projected to slow down through 2027, increasing by about 8% from 2022 levels to reach a total of more than 3.4 trillion. Latin America, Asia and Africa are expected to see the greatest sales volume growth due to population growth and increased access, while North America and Europe will see very low growth. Healthcare per capita varies by region, with Japan and Western Europe using more than twice as much healthcare as most other regions.
- Spending and growth by region: The global pharmaceutical market using invoice price levels is expected to grow at a CAGR of 3-6% by 2027, with varying trends across regions, to approximately $1.9 trillion. Growth in developed countries has been relatively stable, with new products offset by patent expirations. Latin America, Eastern Europe and parts of Asia are expected to experience strong growth due to increasing volume and adoption of new drugs. US market growth on a net price basis is projected to adjust from a CAGR of 4% over the past five years to a CAGR of -1-2% by 2027. The loss of exclusivity impact will increase to $140.7 billion over five years, including significant biosimilar introductions in 2023 and 2024. New brand spending in the US is projected to be higher than in the last five years, but will represent a smaller percentage of total spending.major elements of Inflation Restrictions Act (IRA) No baseline has been established and no detailed plan provided for the implementation of the IRA for drug pricing and cost sharing, so the specific impact has yet to be determined, but drug pricing and impact on cost sharing among stakeholders.
- Impact of COVID-19 on medicine use: COVID-19 continues to impact the global pharmaceutical market, with the net cumulative pharmaceutical market estimated to expand by $500 billion from 2020 to 2027, mainly related to vaccines. Global market growth is projected to return to pre-pandemic forecast levels by 2024, but delays in diagnosis continue to disrupt demand for many other medicines. Late use. This creates considerable uncertainty about the future of the pandemic and the potential risk of a resurgence of the disease, especially in regions of the world with the lowest vaccination and booster coverage.
- Increased spending on specialty drugs: Specialty medicines will account for about 43% of global spending in 2027, and 56% of total spending in developed markets. Global spending on cancer drugs is expected to reach $370 billion by 2027, with growth fueled by the launch and use of new drugs and limited impact from new biosimilars. Immunology spending growth is expected to slow to 3-6% by 2027 due to lower prices associated with biosimilar competition. New treatments for rare neurological disorders, Alzheimer’s disease, and migraine are expected to drive increased spending on neurology.
- biotechnology spending: Biotechnology accounts for 35% of global spending and includes both breakthrough cell and gene therapies and mature biosimilar segments. Great advances are expected to continue, especially in oncology and immunology. The prospects for next-generation biopharmaceuticals are critically uncertain in terms of their extent of clinical and commercial success.
About the IQVIA Human Data Science Institute
The IQVIA Institute for Human Data Science contributes to improving human health around the world through timely research, insightful analysis, and scientific expertise applied to detailed unidentified patient-level data. increase.
To meet essential needs in healthcare, the Institute provides objective and relevant insights and research, accelerating the understanding and innovation essential to sound decision-making and improving human outcomes. With access to IQVIA’s systematic knowledge, advanced analytics, technology, and unmatched data, the Institute works with a wide range of healthcare stakeholders, including government agencies, academic institutions, the life sciences industry, and payers. For more information about the IQVIA Institute, please visit: www.IQVIA Institute.org.
About IQVIA
IQVIA (NYSE:IQV) is a leading global provider of advanced analytics, technology solutions and clinical research services to the life sciences industry. Through its analytics, innovative technology, big data resources, and broad domain expertise, IQVIA creates intelligent connections across all aspects of healthcare. IQVIA Connected Intelligence™ delivers powerful insights with speed and agility. This enables customers to accelerate the clinical development and commercialization of innovative medicines that improve patient outcomes. With approximately 85,000 employees, IQVIA operates in over 100 countries.
IQVIA is a global leader in protecting individual patient privacy. The company uses a variety of privacy-enhancing technologies and safeguards to protect individual privacy while helping healthcare professionals identify disease patterns and correlate them with the precise treatment pathways and treatments needed for better outcomes. We generate and analyze information at scale to help IQVIA’s insight and execution capabilities help biotech, medical device, pharmaceutical companies, medical researchers, government agencies, payers, and other healthcare stakeholders to better understand and improve disease, human behavior, and scientific progress. Helps you on your way to therapy. For more information, please visit the following URL: www.iqvia.com.
