A new IMS Institute report says that global spending on oncology drugs has reached $91 B by year end 2013 and is growing at 5% annually. The market will soon top $100 B driven by a rash of new cancer meds coming on the market and at elevated prices. Meds like Xalkori, Zelboraf, and Yervoy are recent additions -- coming with big price tags ala Yervoy's $120,000 per year.
IMS says the overall cost of treating a cancer patient has risen from $5000 to more than $10,000 per month in only 1 year. Sounds unsustainable doesn't it? Perhaps that's why 3rd party payers and the governments in US and EU countries have begun to balk at the pricing. The UK's NICE for example recently rejected Roche's new Kadcyla for reimbursement due to its high price. India's government (as written about here yesterday) has chosen to bypass certain drug patents to issue compulsory licenses to make drugs more available and affordable in their market.
Despite this, cancer drugs still grew at an annualized rate of 15% from 2008-2013 and are expected to account for $74 to $84 B by 2017 or more than double the next sized class, diabetes treaments. See Fierce Pharma.
Posted by Bruce Lehr May 6th 2014.