IMS forecasts higher global spending on medicines

MUMBAI – The "Global Use of Medicines: Outlook through 2016", a study by the IMS Institute for Healthcare Informatics, reports that the annual global spending on medicines will rise from $956 billion in 2011 to nearly $1.2 trillion in 2016. This represents a compound annual growth rate of 3-6 percent. Growth in annual global spending is forecast to more than double by 2016 to $70 billion, driven by increases in the pharmerging markets and an uptick in spending in developed nations.

The global market for medicines is poised to rebound from an expected low point of 3-4 per cent growth in 2012 to 5-7 per cent in 2016, according to the forecast. Additionally, patent expiries, which will peak in 2012, as well as increased cost-containment actions by payers, will constrain branded medicine spending growth through 2016, at 0-3 per cent.

Outlook through 2016 report are based on IMS audits and include all types of biopharmaceuticals, including biologics, OTC, and traditional medicines distributed and administered through regulated delivery systems such as pharmacies, hospitals, clinics, physician offices, and mail order, where applicable. Spending figures are derived from IMS Market Prognosis and are reported at ex-manufacturer estimated prices that do not reflect off-invoice discounts and rebates.

The full report can be downloaded here.