Oral Targeted Anticancer Medications: Use and Spending by Evidence and Magnitude of Clinical Benefit, 2016-2021

Mahnum Shahzad1,2, Rebecca Costa2, Stephanie Argetsinger2

  • 1Department of Population Medicine, Harvard Medical School, Boston, MA.

JCO Oncology Practice
|July 22, 2026
PubMed
Abstract

Insights

Spending on oral targeted anticancer medications (OTAMs) increased significantly from 2016-2021. While most spending was for drugs with proven survival benefits, substantial use and costs were for those without confirmed overall survival (OS) benefits.

Area of Science:

  • Oncology
  • Pharmacoeconomics
  • Health Services Research

Background:

  • Oral targeted anticancer medications (OTAMs) are increasingly approved with limited evidence of clinical benefit.
  • These drugs are often marketed at high prices, leading to significant healthcare expenditures.
  • Insurance coverage mandates further complicate the use and accessibility of OTAMs.

Purpose of the Study:

  • To analyze the trends in utilization and spending of OTAMs.
  • To determine how the use and cost of OTAMs correlate with the level of clinical evidence supporting their efficacy.
  • To assess the association between drug indications, evidence of overall survival (OS) benefit, and associated healthcare spending.

Main Methods:

  • Utilized national health insurance claims data from 2016 to 2021.
  • Assessed the volume of use (patient-days supplied) and spending on OTAMs approved between 2010 and 2021.
  • Categorized drug use based on FDA-documented evidence of OS and progression-free survival benefits for each approved indication.

Main Results:

  • OTAM use increased from 50.7 to 120.4 patient-days per 1,000 enrolled patients between 2016 and 2020.
  • Approximately 47-56% of dispensings were for indications with documented OS benefit.
  • Total spending on OTAMs rose from $394 million to nearly $1 billion USD between 2016 and 2020, with 11-12% spent on off-label uses.

Conclusions:

  • The majority of OTAM dispensings and spending between 2016 and 2021 were for indications with documented OS benefits.
  • A significant portion of OTAM use and expenditure was associated with drugs lacking confirmed OS benefits.
  • Further research is needed to evaluate the cost-effectiveness and clinical value of OTAMs with uncertain evidence.

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