More than 20 tumor types are being treated with one or more of the 70 new cancer treatments that have been launched in the past five years, with the sustained surge in innovative therapies driving the global oncology market to $107 billion in 2015. However, many of these drugs are not yet available to patients in most countries, and even when registered they may not be reimbursed under public insurance programs, according to a new study released by the IMS Institute for Healthcare Informatics.
The study, “Global Oncology Trend Report: A Review of 2015 and Outlook to 2020,” finds that growth in global spending on oncology therapeutics and supportive care drugs increased 11.5% on a constant-dollar basis last year. Growth is measured using ex-manufacturer prices and does not reflect off-invoice discounts, rebates or patient access programs. A large and diverse set of more than 500 companies is actively pursuing oncology drug development around the world. Collectively, they are advancing nearly 600 new molecules through late-stage clinical development, most frequently for non-small cell lung cancer and breast, prostate, ovarian and colorectal cancers.
Annual global growth in the oncology drug market is expected to be 7.5 to 10.5% through 2020, reaching $150 billion. Wider utilization of new products—especially immunotherapies—will drive much of the growth, offset by reduced use of some existing treatments with inferior clinical outcomes. Payers also are expected to tighten their negotiation stance with manufacturers and adopt new payment models in an effort to drive greater value from their expenditures on these drugs.
“The new science redefining cancer as a large number of narrowly defined diseases and yielding therapeutic options for an expanding number of patients is rapidly transforming the oncology treatment landscape,” said Murray Aitken, IMS Health senior vice president and executive director of the IMS Institute for Healthcare Informatics. “Most health systems are struggling to adapt and embrace this evolution—including the regulatory systems, skilled professionals, diagnostic and treatment infrastructures, and financing mechanisms that are required to serve the needs of cancer patients around the world. These challenges demand urgent attention in light of the strong near-term pipeline of clinically distinctive therapies, and new programs such as the U.S. government’s ‘cancer moon shot’ that are galvanizing research efforts to change the trajectory of cancer.”
The report’s other key findings include the following: