Decision Resources Group projects $1.8 billion in 2023 sales of biosimilar G-CSFs
BURLINGTON, Mass. — Decision Resources Group on Wednesday found that sales of biosimilar versions of the granulocyte colony-stimulating factors (G-CSFs) filgrastim, which is currently pending Food and Drug Administration approval, and pegfilgrastim could reach $1.8 billion in the United States by 2023. Medical oncologists and hematologist-oncologists surveyed in France and Germany indicated that they would prescribe future biosimilar G-CSFs, such as pegfilgrastim, to a significantly higher percentage of eligible patients compared with biosimilars of monoclonal antibodies.
"Filgrastim biosimilars have performed well in Europe, with sales exceeding the reference product in many countries," stated Kate Keeping, Decision Resources Group senior director of biosimilars. "Now those biosimilars are on the verge of entering the U.S. market where we expect U.S. oncologists to swiftly adopt these tried and tested lower-cost alternatives to Amgen's Neupogen."
Also to come out of the Biosimilars Advisory Service report, entitled "Physician Perspectives on Granulocyte Colony-Stimulating Factors and Monoclonal Antibodies in Oncology," a greater proportion of surveyed oncologists indicated that they expect to start prescribing biosimilar G-CSFs within six months of availability, compared with biosimilar MAbs.
The majority of surveyed oncologists indicated that they have a preferred biosimilar filgrastim product and that preference is driven by which manufacturer they trust most. And the proportion of surveyed oncologists that indicated that regulatory approval would not allay all of their concerns about equivalence between a biosimilar and the reference brand was higher for MAbs than for G-CSFs.
IMS Health projects increase in global medicine spending of up to 30% by 2018
PARSIPPANY, N.J. — More specialty drug innovation, greater patient access to medicines and reduced impact from patent expiries will be the primary drivers of an increase in global medicine spending of up to 30% by 2018. The increase in annual spending will spike this year when absolute growth will be about $70 billion, up from $44 billion in 2013 and $26 billion in 2012, according to new research released today by the IMS Institute for Healthcare Informatics.
“The higher level of spending growth we’re projecting over the next five years reflects an unusual combination of higher spending on the surge of innovative medicines for patients and lower savings from patent expiries,” stated Murray Aitken, IMS Health SVP and executive director of the IMS Institute for Healthcare Informatics. “This is particularly evident this year and next in developed countries — and especially in the U.S., which accounts for more than a third of the global market.”
Specialty medicines will contribute a projected 40% of total global spending growth through 2018. Higher spending on specialty medicines is expected over the next five years, particularly in developed markets. Much of this growth is from medicines bringing new treatment options to patients, including breakthrough therapies or even cures that often reduce complications or hospitalizations while improving outcomes. Advances will be particularly notable in the oncology, autoimmune, respiratory, anti-virals and immunosuppressants therapy areas. The surge in cancer drug innovation in recent years will continue and contribute to global spending on all oncology drugs — reaching about $100 billion in 2018, up from $65 billion last year. The introduction and uptake of potent new medicines for treating Hepatitis C are expected to result in about $100 billion in total spending over the five-year period ending 2018.
Nearly 200 new drugs are forecast to be launched in the next five years. A high number of new molecular entities are expected to be launched annually, continuing a second wave of innovation similar to levels seen in the mid-2000s. More than 2,000 products are currently in late-stage clinical development, of which oncology therapies make up fully one-fourth of that total. The growing number of medicines receiving the Food and Drug Administration’s Breakthrough Therapy Designation is contributing to an acceleration of approvals. The availability of new medicines to patients around the world, however, varies significantly by country and disease: on average, fewer than half of the medicines initially launched over the prior five years are available across the major developed markets.
According to the report, growth in spending in developed markets will spike in 2014-15. This year, developed markets are seeing strong growth due to fewer patent expiries, the launch of innovative medicines and price increases. The greater contribution to growth from developed countries through 2018 is being led by the United States and Japan, with France, Germany, Spain, United Kingdom and Italy maintaining relatively low growth levels. While these markets will moderate as cost-containment measures further limit price levels, rising volumes will continue to contribute to overall market growth.
Spending on medicines in pharmerging markets will rise more than 50% over the next five years. The 21 countries that now account for 25% of global spending on medicines will continue to broaden access to treatments as their economies expand and governments advance efforts to provide universal health coverage. More than 80% of the forecasted growth in drug spending will be for non-branded medicines, including greater use of biologic therapies.
China — already the world’s second largest pharmaceutical market — will reach spending levels of $155 to 185 billion in 2018. Implementation of health reforms is increasing demand for medicines, while pricing regulations are being used more frequently to manage overall growth levels.
The report "The Global Outlook for Medicines Through 2018" found that the total global spend for pharmaceuticals will increase by $305 billion to $335 billion on a constant-dollar basis, compared to $219 billion during the past five years. Global spending is forecast to grow at a 4% to 7% compound annual rate over the next five years, with most countries experiencing an increase in drug expenditure per capita. Spending is measured at the ex-manufacturer level before adjusting for rebates, discounts, taxes and other adjustments that affect net sales received by manufacturers. The impact of these factors is estimated to reduce growth by $60 to 80 billion, or approximately 25% of the growth forecast over the next five years.
The full report, including a detailed description of the methodology, is available at TheIMSInstitute.org. It can also be downloaded as an app via iTunes at https://itunes.apple.com/app/ims-institute/id625347542. The study was produced independently as a public service, without industry or government funding.
Emdeon to acquire Change Healthcare
NASHVILLE, Tenn. – Emdeon on Wednesday announced it has entered into a definitive agreement to acquire Change Healthcare. Change Healthcare will enable Emdeon to offer its customers additional solutions that marry cost and quality information with an inventory of consumer behavioral insights. These solutions can help employees, health plan members and patients reduce costs and become better healthcare consumers.
"Our customers are prioritizing information, insights and capabilities that enable individuals to be better healthcare consumers," stated Neil de Crescenzo, Emdeon president and CEO. "While Emdeon has assisted payers, providers, pharmacies and our partner network with cost management, efficiency and maximizing revenues for many years, the addition of Change Healthcare's innovative, proven capabilities will further accelerate our customers' success. By combining our connectivity and scale with Change Healthcare's transparency and personalization capabilities, we can help our customers further increase member and patient engagement and add even more value to the services they provide their customers."
Emdeon is the largest financial, administrative and clinical health information network in the nation, processing more than seven billion transactions with a claims value of $1 trillion annually, the company reported. Emdeon's Intelligent Healthcare Network reaches 700,000 physicians, 81,000 dentists, 60,000 pharmacies, 5,000 hospitals, 600 vendors, 450 laboratories and 1,200 government and commercial payers.
Change Healthcare was founded to transform the way consumers evaluate and utilize healthcare services by combining insights at the point of decision with sustainable engagement. With a national customer base of health plans and employers and more than 10 million lives under contract, Change Healthcare is a leading provider of healthcare consumer engagement and value-based healthcare solutions that enable consumers to: Better understand and utilize their healthcare benefits and options;Receive proactive insights on a dynamic basis at critical decision points;Make informed healthcare purchasing decisions based on quality, cost and convenience; andManage their out-of-pocket responsibility and realize savings.
Consumers continue to enroll in high deductible health plans at a rapid pace. Over 80% of employers now offer these plans and nearly 40% of employees have deductibles of $1,000 or more. In addition, an increasing number of healthcare consumers are choosing their benefits through public and private health insurance exchanges. These plans offer more flexibility but often have higher out of pocket expenses, requiring consumers to better understand their healthcare benefits and find ways to maximize the value of their healthcare spend. As a result, consumers increasingly need accurate cost and quality information before treatment as they learn to "shop" for affordable healthcare. Creating improved consumer and provider access to cost and quality data at the point of care is a core component of any value-based healthcare delivery system and will have a significant impact on on-going healthcare expenses.
Like Emdeon, Change Healthcare is headquartered in Nashville, Tenn. The team at Change Healthcare will join Emdeon and form the core of the company's healthcare consumer engagement business. The business will be led by Change Healthcare's president and CEO, Doug Ghertner, who will report directly to Emdeon's CEO Neil de Crescenzo.
Emdeon will acquire Change Healthcare, a privately held company, for approximately $135 million in cash payable at closing, plus additional contingent payments of up to $50 million based upon the attainment of financial performance objectives of the acquired business through the end of 2017. The purchase price will be paid with a combination of available cash and funds under Emdeon's revolving senior credit facility. The acquisition is subject to customary closing conditions and is expected to close later this month.
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