Prescription drug spending hits record high

Global spending on prescription drugs has surpassed the $600 billion mark, new research has shown.

Figures from the pharmaceutical market researcher IMS indicate that total global pharmaceutical sales increased by seven per cent in 2005.

Europe saw growth of 7.1 per cent, to $169.5 billion, outstripping North America, which grew by 5.2 per cent.

Particularly strong growth came from Latin America, where sales increased by 18.5 per cent and also Asia Pacific (outside of Japan) and Africa, where sales grew by 11 per cent to $46.4 billion.

IMS senior vice president of corporate strategy Murray Aitken said the developing markets were “performing exceptionally well”.

IMS said that an increasingly old global population and a rise in wealth generally helped shore up the market, with product innovation also helping to drive up sales.

In 2005 40 per cent of growth was fuelled by new products, the firm reported, as medicines such as diabetes treatment Byetta and insomnia drug Lunesta were well-received and also the blood thinner from Bristol-Myers Squibb, Plavix.

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