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Related Experiment Video

Updated: Jul 17, 2026

Drug Repurposing Hypothesis Generation Using the "RE:fine Drugs" System

Drug Repurposing Hypothesis Generation Using the "RE:fine Drugs" System

Published on: December 11, 2016

Projecting future drug expenditures--2007.

James M Hoffman¹, Nilay D Shah, Lee C Vermeulen

¹Pharmaceutical Department, St. Jude Children's Research Hospital, Memphis, TN, USA.

American Journal of Health-System Pharmacy : AJHP : Official Journal of the American Society of Health-System Pharmacists

|January 25, 2007

Summary

Drug spending growth moderated in 2005-2006 due to generics, cost-sharing, and safety concerns. Projections for 2007 indicate continued slower growth in prescription drug expenditures.

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Area of Science:

Health Economics
Pharmaceutical Policy
Drug Utilization

Background:

Prescription drug expenditures represent a significant component of healthcare spending.
Understanding trends and influencing factors is crucial for cost containment and resource allocation.
Previous analyses have identified various drivers of drug cost escalation.

Purpose of the Study:

To analyze drug expenditure trends in 2005 and 2006.
To project drug expenditures for 2007.
To identify key factors influencing drug costs.

Main Methods:

Analysis of historical drug expenditure data (2005-2006).
Projection modeling for future drug expenditures (2007).
Identification and assessment of factors impacting drug costs.

Main Results:

Total prescription drug expenditures increased by 5.5% from 2004 to 2005, reaching $252 billion.
Hospital drug expenditures showed a moderated increase of 3% in the first nine months of 2006.
Moderation attributed to generic drug availability, increased cost-sharing, and safety concerns reducing drug use.

Conclusions:

Continued moderation in drug expenditure growth is expected in 2007.
Projected expenditure increases for 2007: 5-7% (outpatient), 14-16% (clinics), 4-6% (hospitals).
Factors influencing future costs include new drug pipelines, safety concerns, and patent expirations.