In a report released this month, IMS predicts global drug spending to have a compound annual growth rate (CAGR) of 3%–6% through 2016 to reach $1.2 trillion. CAGRs of the US and developing countries will be 1%–4% and 12%–15%, respectively. Spending on brand name drugs, mostly by developed markets, will account for 53% of spending by 2016. Spending on generics, mostly by emerging markets, will comprise 35%. The share of developed countries’ spending will fall from 73% in 2006 to 57% in 2016, while developing countries’ share will increase to 30%. Drugs in 20 therapy areas will comprise 42% of total spending, led by drugs for cancer, diabetes, and asthma and chronic obstructive pulmonary disease, which combined will make up $175–189 billion. The share of biologics spending on biosimilars will jump from 0.4% in 2011 to 2% in 2016. In total, there will be 160–185 drugs introduced 2012–2016.

Source: IMS