IMS reports 2006 drug sales up 8.3%

View the press release and related charts here: http://www.imshealth.com/ims/portal/front/articleC/0,2777,6599_3665_80415465,00.html
Obtain the latest Retail Drug Monitor at http://www.imshealth.com/vgn/images/portal/cit_40000873/31/60/80273141IMS%20Retail%20Drug%20Monitor%20for%20December%202006.pdf

Some interesting tidbits:

• Utilization grew at 4.6% compared to 3.2% for 2005, with Medicare Part D increasing utilization by 1-2%
• They expect 2007 drug sales to increase by 6-9%
• Biotech sales grew 20% to $40.3 billion, (14.7% of total sales)
• Chain pharmacy Rxs grew 5.8%, independent pharmacy Rxs grew 1.9% and mail-service Rxs grew 4.2%

The biggest challenge to payers remains how to manage the 20% growth in biotech drugs. I believe that payers will need to start restricting coverage to select indications in order to help maintain affordability of their health benefit programs. You may want to review how Britain's National Institute for Health and Clinical Excellence (NICE) deals with these issues. http://www.nice.org.uk/guidance