Spending on Specialty Drugs Soars

Spending on high-cost specialty drugs soared 17.5% last year and is expected to more than double by 2009, according to a report to be released today.

In contrast, spending on traditional drugs rose 10% in 2005.

Specialty drugs are typically biotechnology medications that treat complex, chronic conditions and often need to be injected. Spending on such drugs reached $40 billion last year, or 19% of the total spent on all medicines, according to Express Scripts Inc., a St. Louis-based pharmacy benefit manager.

By 2009, Express Scripts predicts, specialty drug spending will reach $90 billion, or 28% of the projected total of $316 billion for all medications. It expects spending on traditional medicines to grow 32% to $226 billion.

The growth in specialty drug spending will be driven by several factors, including new products, additional uses for existing medicines and more patients, Express Scripts spokesman Steve Littlejohn said.

Express Scripts based the overall projections on data from the government and IMS Health, a drug market research firm.

The explosive growth in specialty-drug spending is especially problematic because there is no pathway for generic competitors to enter the market.

Spending on injectable drugs for inflammatory diseases such as rheumatoid arthritis and Crohn’s disease soared 35%, the largest increase in the group.

The average prescription for an inflammatory disease costs $1,417.