Silver Book Fact

Fact image

Using Newer Medicines Results in Savings of $111 per Treated Condition

PhRMA. The Value of Medicines: Facts and figures 2006; 2006. http://innovation.org/documents/Value%20of%20Medicine%20FINAL%200712061.pdf

Reference

Title
The Value of Medicines: Facts and figures 2006
Publication Date
2006
Authors
PhRMA
URL
Read Full Resource

Categories

  • Innovative Medical Research
  • Economic Value

Related Facts

  • Every $1 invested in newer medications saves $7 in other costs.  
  • Eliminating hypertension in all elderly persons would result in 75 million additional disability-adjusted life years (DALYs) and reduce Medicare spending by around $890 billion.  
  • Increased longevity added about $3.2 trillion per year to national wealth between 1970 and 2000, an uncounted value equal to approximately 1/2 of the average annual GDP during that period.  
  • National health spending growth is projected to slow from 6.9% in 2005 to 6.8% in 2006, which marks the 4th consecutive year of a slowing trend.  
  • New medicines, or “new chemical entities” accounted for 40% (0.8 years) of the two-year gain in life expectancy seen in 52 countries from 1986-2000.