The majority of "drug spending" isn't really on drugs.
Updated: Mar 15, 2022
The econ minds at Berkeley Research Group LLC just confirmed a trend seen in IQVIA data, and long called out by Adam Fein:
When it comes to overall spending on pharmaceuticals, 51% actually goes to payers and intermediaries, 37% to biopharma innovators, 12% to generics companies.
2020 was the first year in which the majority of branded drug costs (50.5% as share of gross spending) went to entities other than the developer of the medicines, a 50% increase of payments to non-manufacturers relative to 2013.
While drug net prices decline, payers and intermediaries realize skyrocketing revenues. #GTN#data#drugpricing --
Full Report here: https://lnkd.in/dEmPT5nS
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