The increase demand for various medicines and the continuous need to launch new drugs are key contributors to the spending growth in the pharmaceutical industry. According to the OECD Health at a Glance, “between 2000 and 2013, among countries for which data are available, the use of anti-hypertensive, anti-diabetic and anti-depressant medications nearly doubled, while the use of cholesterol-lowering drugs tripled….” The rise in demand stems from the following increases:
Chronic Diseases: According to the Partnership to Fight Chronic Diseases, 45% of Americans have at least one chronic disease. This leads to about 1.7 million Americans a year. There is an increasing need to combat this, which results in an increase in demand for research and development of new drugs.
Aging Population: In addition to this, the increase in expected life span has an impact on the increasing demand for pharmaceutical drug pipelines. As median age continues to increase, health risks, severity, and conditions also increase. As a result, this is a key driver in the need for additional treatment.
Innovation: The focus of continuous improvements and investments has been striving to find solutions for early treatment and discoveries. Research and development is a huge investment so the increase in manufacturing is usually worth the risk.
For a look at how the pharmaceutical industry will be over the next five years, click here to check out the forecast.