QuintilesIMS Report: Drug Spending Growth Rate Slows to 5.8 Percent in 2016

Spending on medicines topped $450 billion in 2016, rising less than half as fast as the industry has seen over the past two years.

Spending based on invoice prices increased by just 5.8 percent in 2016 compared to the previous year. Net spending after adjusting for manufacturer rebates and concessions was $323 billion, up 4.8 percent compared to 2015, according a report from QuintilesIMS.

QuintilesIMS attributed the slower growth rate to a dip in the number of new drugs reaching the market in 2016 compared to previous years, combined with a reduced level of spending on new medicines.

Last year, $14.8 billion in additional net spending was driven by new branded drugs, the report said, while the average net price for brands already on the market increased an estimated 3.5 percent.