#GLOBAL PHARMACEUTICAL BENEFITS DRIVERS#

An average of 54 new active substance (NAS) launches per year are expected over the next five years and two-thirds of launches will be specialty products, lifting specialty share of spending to near 50% by 2023 in most developed markets. New products and losses of exclusivity will continue to drive similar dynamics across developed markets, while product mix will continue to shift to specialty and orphan products. Pharmaceutical spending in China reached $137 billion in 2018 and is expected to reach $140в€’170 billion by 2023, but its growth is likely to slow to 3в€’6%. In Europe, cost-containment measures and less growth from new products contribute to slower growth of 1в€’4%, compared to the 4.7% compound annual growth seen over the past five years. Medicine spending in Japan totaled $86 billion in 2018, however spending on medicines is expected to decline by -3 to 0% through 2023, largely because of exchange rates and the continued uptake of generics. In the United States, overall spending growth is driven by a range of factors including new product uptake and brand pricing, while it is offset by patent expiries and generics.

#GLOBAL PHARMACEUTICAL BENEFITS DRIVERS#

The key drivers of growth will continue to be the United States and pharmerging markets with 4в€’7% and 5вЂ“8% compound annual growth, respectively. The global pharmaceutical market will exceed $1.5 trillion by 2023 growing at a 3в€’6% compound annual growth rate over the next five years. The report also highlights ten areas to watch over the next several years that impact the use of and cost of medicines including: prescription digital health tools, artificial intelligence and machine learning, Next-Generation Biotherapeutics and use of real-world evidence in clinical development. It assesses the impact of new drug launches, biosimilars, and growth in the use of specialty medicines. This report includes the latest predictions for the global pharmaceutical market along with geographic, therapy area and channel perspectives. The global outlook for medicine use and spending affects the prospects of life sciences companies, insurers and the health of populations around the world.

Global pharmaceutical benefits