US 2014 prescription drug spend rose 12.6% on higher expenditure for new hepatitis C treatments - Report

A US government survey has revealed American spending on prescription drug jumped 12.6% in 2014 to $305.1 billion, compared with 2.5% a year ago based on increased spending on new hepatitis C treatments and drugs for cancer and multiple sclerosis.

The report by the US Centers for Medicare and Medicaid Services (CMS) showed the spending spiked primarily due to new hepatitis C treatments like Gilead Sciences' (Nasdaq: GILD) Sovaldi (sofosbuvir). However, the growth in prescription drug spending is expected to slow down in 2015 based on expectations of a price cut for expensive specialty treatments for hepatitis C. On the other hand, spending on prescription drugs is forecast to increase to $328.4 billion this year, and surge to $385.1 billion and $564.3 billion in 2018 and 2024, respectively.

Pricing pressure to lower costs going ahead