Higher U.S. Branded Drug Prices and Spending Compared to Other Countries May Stem Partly from Quick Uptake of New Drugs - The Commonwealth Fund

The Commonwealth Fund

Key Findings

• Over the past decade (2000–10), total prescription drug spending rose significantly in Canada (84%), the U.S. (81%), and Germany (79%). Other OECD countries had small rates of increase.
• Per capita drug spending on prescription drugs in 2010 was higher in the U.S. than in all other nations and was twice the level in the U.K., the lowest spender.
• Prices for brand-name drugs were 5 percent to 117 percent higher in the U.S. than in the other countries in all three study years (except in 2005 in Switzerland and Germany). These differences may not reflect price discounts negotiated by U.S. payers

About the Study

The study examined prices and spending for brand-name drugs in Australia, Canada, France, Germany, Switzerland, the United Kingdom, and the United States in 2005, 2007, and 2010, using the Intercontinental Medical Statistics Midas database. It focused on brand-name drugs that had the highest combined sales in 2010 and were available in all of the study countries—37 products in all. In addition to this core sample, the researchers examined prices and spending for seven new products in 2007 and eight new products in 2010, which enabled analysis of the effect of new product introduction and uptake. One limitation of this analysis is that it may not take into account negotiated price discounts in the U.S.