Generics push US drug growth to $307bn
pharmafile | April 20, 2011 | News story | | IMS, IMS Health, drug spending, healthcare spending
Generics replaced branded drugs as the main growth drivers for the US pharmaceutical market in 2010.
The market saw just 2.3% growth last year, less than half of what it achieved in 2009, according to industry analysts at IMS Health.
The increase was driven solely by generics and branded generics, sales of which increased by $7.6 billion in 2010, helping offset stagnant sales of patented drugs.
These fell by 0.7% as companies grappled with patent expiries that claimed $12.6 billion worth of sales last year.
One of these companies was Pfizer, whose Alzheimer’s drug Aricept that went off patent in 2010 and its blockbuster statin Lipitor will lose its US patent later this year in November.
There was some good news for the industry. 2010 was something of a milestone for new drugs in the US: 10 innovative drugs with new mechanisms, six new chemical entities and five orphan drugs all launched last year.
They included a number of potential blockbusters, from Novartis’s oral multiple sclerosis drug Gilenya and Eisia’s breast cancer drug Halaven, to Novo Nordisk’s diabetes drug Victoza, all expected to make global sales of over $1 billion each.
Micheal Kleinrock, director of R&D and IMS Health, said: “Last year, we saw the convergence of key dynamics leading to diminished growth in drug spending, which included the greater use of generics, loss of patent protection for major branded products, slower demand and less spending on new therapies.
“Moreover, fewer patients visited physician offices and initiated new chronic therapy treatments last year, likely the result of the slower economy.”
Cancer drugs growth continues to slide
Oncology remains the biggest therapy area in terms of growth, up by 3.5% to $22.3 billion, but its trajectory has been slowing. Spending on cancer medicines, although up by $790 million last year was some way behind the record $3 billion levels seen in 2006.
This has been largely affected by slower rates of growth from Roche’s key drugs; specifically its blockbuster multi-licenced drug Avastin (which has seen its US breast cancer licence revoked), breast cancer treatment Herceptin and blood cancer drug Rituxan, with spending growth halved to $1.1 billion from $2.2 billion in 2006.
Hot on the heels of oncology drugs were respiratory treatments, which grew by 6.5% to $19.3 billion.
Kleinrock concluded: “It became apparent in 2010 that the healthcare landscape is shifting in significant ways.
“Physicians and patients have more therapy options than ever, and yet spending on medicines is rising at historic lows with the impact of patent expiries and reduced patient activity.
“The long-term effect on patient health of fewer doctor office visits and new therapy starts is unclear and requires closer attention.”
Ben Adams
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