Oncology Spending Increases as New Treatments Emerge

Global spending on oncology therapeutics and supportive care drugs have increased at a compound rate of 11.6% since 2011, rising from $91 billion in 2012 to $113 billion in 2016, according to findings from a recently published industry report. 

These findings represent a substantial increase over the 4.9% growth recorded between 2006 and 2011. Further, total spending is anticipated to exceed $147 billion by 2021.

The QuintilesIMS Institute’s report, titled “Global Oncology Trends 2017: Advances, Complexity and Cost,” notes that approximately 46% of global costs were accrued within the United States alone. Major European markets—including France, Germany, Italy, Spain, and the United Kingdom—and emerging markets are responsible for a smaller share, yet are growing at similar rates of 10.8% and 8.4%, respectively.

Much of the oncology market’s expansion appears to be tied to a growing drug pipeline. According to the report, 68 new drugs were approved for 22 indications from 2011 to 2016, and 631 different molecules are currently in late-stage development. This is a 7.7% increase over the 586 oncology molecules in a similar stage of development recorded during the previous year.

However, the increased volume of research is accompanied by quicker development cycles. The median time from patent filing to FDA approval has been reduced from 10.25 years in 2013 to 9.8 years in 2016, a change that the report credits to the FDA’s Breakthrough Therapy Designation and other expedited development and review programs. 

These newer, more targeted therapies have added to oncology treatment complexity and, as a result, the drugs’ higher costs. Other potential factors in the increase also include improved survival rates and treatment duration, the growing use of combination therapies with high-cost novel agents, and multiline therapies. 

“The launch of multiple novel agents, coupled with increasing awareness and focus on cancer prevention, and emphasis on early diagnosis, have contributed to improved outcomes and a reduction in mortality rates for many of the major cancers over the past decade,” said Murray Aitken, executive director of the QuintilesIMS Institute. —Dave Muoio