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Related Experiment Videos

Projecting future drug expenditures--2001.

B Mehl1, J Santell

  • 1Mount Sinai Hospital, New York, NY, USA.

American Journal of Health-System Pharmacy : AJHP : Official Journal of the American Society of Health-System Pharmacists
|February 24, 2001
PubMed
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Drug costs are projected to rise 11-15% in 2001 due to increased utilization, new drug products, and pricing strategies. Factors influencing these rising pharmaceutical expenditures include R&D growth and generic drug market expansion.

Area of Science:

  • Health Economics
  • Pharmaceutical Policy

Background:

  • The year 2000 presented new challenges in drug pricing, therapy, distribution, and overall costs.
  • Pharmaceutical expenditures represent a growing portion of total healthcare spending.

Purpose of the Study:

  • To project drug costs for 2001 and identify key influencing factors.
  • To analyze trends in drug development, generic drug market growth, and regulatory changes impacting pharmaceutical spending.

Main Methods:

  • Analysis of drug cost trends and projections for 2001.
  • Review of research and development expenditures and new drug approvals.
  • Examination of the generic drug market expansion and prescription to nonprescription drug conversions.

Main Results:

Related Experiment Videos

  • Anticipated drug cost increase of 11-15% in 2001.
  • Significant growth in research and development (R&D) expenditures without a proportional increase in new drug approvals.
  • Projected rise in generic drug sales to $20 billion by 2005 and total drug sales to $243 billion by 2008, representing 12.6% of healthcare spending.

Conclusions:

  • Drug costs are expected to continue double-digit growth in 2001, driven by utilization, new product introductions, and price hikes.
  • Emerging factors like new distribution systems, federal pricing initiatives, drug imports, and state-level cost-reduction efforts will shape the pharmaceutical market.
  • The conversion of prescription drugs to nonprescription status may offer some budget relief.