Global cancer drug spend slows
pharmafile | May 7, 2014 | News story | Medical Communications, Research and Development, Sales and Marketing | Cancer, IMS, spending
Spending on cancer drugs worldwide is slowing, according to a new report from the IMS Institute for Healthcare Informatics.
The figure has increased at a compound annual growth rate of 5.4% over the past five years compared with 14.2% from 2003-08 – but growth has been lower than 10% each year from 2008.
Using ex-manufacturer prices, which take no account of off-invoice discounts and rebates, the report found that $91 billion was spent in 2013, versus $71 billion in 2008 and $37 billion a decade ago.
The report suggests that new drug launches in this therapy area have favoured small molecules, including kinase inhibitors, with biologics now representing less than half of the oncology market.
Pharma’s investment is still high, with cancer treatments accounting for more than 30% of all pre-clinical and Phase I products – many of them focussed on lung and breast cancer – but they are increasingly unlikely to be blockbusters.
“Many new drugs are targeted to small patient populations and face strong competition, resulting in comparatively modest sales levels,” the report suggests.
Rarer cancers such as ovarian, leukaemia, stomach and liver are also being seen as worthwhile R&D targets for the industry – but the increase in targeted therapies has “escalated payer scrutiny of their value relative to incremental benefits over existing treatments”.
Another change identified by IMS is that biosimilars will continue to play a “significant” role in low- and middle-income countries, generating $6-12 billion in oncology sales by 2020.
“As the cancer patient population mix shifts from mature and developed markets to low- and middle-income countries, oncology is bringing higher levels of uncertainty to health systems across the globe – both in terms of the nature and rate of innovative treatments, and levels of reimbursement for patient care,” says Murray Aitken, executive director of the IMS Institute for Healthcare Informatics.
And there are other problems, IMS believes. “While an estimated 30% of cancers are preventable and early diagnosis and treatment can reduce or delay mortality significantly, the reality is that countries struggle to bring together the right combination of preventive measures and clinical interventions, including vaccines, diagnostics and therapeutics,” Aitken warned.
Adam Hill
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