Report: Oncology costs increasing faster than before
- The oncology pipeline is expanding at a rapid clip. According to a report released Thursday by QuintilesIMS Institute, there are now 631 molecules in the late-stage oncology pipeline — up 7.7% from a year ago.
- There have been 68 novel oncology drug approved since 2011 across 22 different cancer types, said the Global Oncology Trends 2017: Advances, Complexity and Cost report.
- Meanwhile, global spending on oncology drugs and supportive care increased 8.7% over the last five years to $113 billion in 2016. That’s almost double the increase of 4.9% seen in 2006 to 2011.
Total spending for oncologics is expected to increase to $147 billion by 2021, according to the report.
This is an increase of 6% to 9% at a constant annual growth rate, outpacing growth for total global medicine spending during that time period.
The QuintilesIMS Institute report attributes this fast pace of growth to the high number of new therapies approved, as well as the corresponding higher costs associated with these novel agents.
The report notes this is particularly true of the 37 new oncologics launched in the U.S. from 2011 to 2015. Of the 20 countries included in the report, more than half of the launches come from eight countries.
Yet, with increased costs comes increased efficiency. The time from which patents are filed to when a drug is approved by the Food and Drug Administration has dropped, falling from 10.25 years to 9.8 years.
This has been driven by increased productivity at the FDA, including a slew of new designations that have expedited approvals. The report indicates that 70% of drugs approved in 2015 were through at least one of the accelerated approval pathways: Breakthrough Therapy, Accelerated Approval, Priority Review or Fast Track designation.
- QuintilesIMS Report
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