By The Numbers

Compiled by Cari Kraft, Jacobs Management Group, Inc.

4.5T

Sales of in vitro diagnostics top device sector

The leading device sector for the next several years will continue to be in vitro diagnostics, with projected sales of $70.8B remain in 2022, more than 13% of the industry’s total sales. Roche is the leading company in this segment, with its 2022 test sales forecast to reach $12.8 billion. Source: EvaluateMedTech® World Preview 2016, Outlook to 2022

$5.2B

Drug advertising budgets reach new high

Number of doses of medicines worldwide Nielson estimated that $5.2 billion was by 2020 spent on prescription drug advertising The global use of medicines is expected to reach in 2015. Even as social media reaches 4.5 trillion doses by 2020, costing $1.4 trillion. more people (see our last issue), the The largest pharmaceutical-using countries will largest chunk of that amount was be the pharmerging markets, accounting for for television advertising. Two drugs two-thirds of the global medicine usage, mostly in particular were promoted on TV generic medicines. This dramatic uptick is largely the most. AbbVie spent $357 million due to broad-based health system expansions. in 2015 in TV ads forHumira, and Source: IMS Institute for Healthcare Informatics, Pfizer followed, with $328 million on “Global Medicines Use in 2020: Outlook and commercials for Lyrica. Implications” Source: STAT, April 2016, based on market reports from Kantar Media, Nielsen, and iSpot.tv. $32M

Top 10 new molecular entities expected to grow enormously in the next five years

Although the top molecular entities reached only $2 million in sales in 2015, they are expected to grow to over $32 million by 2020. These include Pfizer’s Ibrance, Gilead’s Genvoya, Novartis’s Entresto, Vertex’s Orkambi and Amgen’s Repatha. Source: EvaluatePharmaWorld Preview 2016

49%

Drug companies setting physician compensation caps

The percentage of drug companies setting annual compensation caps on physicians continues to increase. In 2009, just 38% of the pharmaceutical firms surveyed reported compensation caps. That number increased to 49% by 2015. For the 2016 data, around 55% of the large companies reported maintaining compensation caps, which are more common in the larger companies. Source: Cutting Edge Information, “Developing and Maintaining Annual Compensation Caps for HCPs”

Doctors Send $1.6M A Year to Hospitals Doctors are sending an increased amount of patients to hospitals. MerrittHawkins new $1.6M analysis shows that a single doctor on average brings in $1.56 million in direct net inpatient and outpatient revenue to a hospital, an increase of nearly 8% from $1.45 million in 2013. Source: Merit Hawkins, “2016 Physician Inpatient/Outpatient Revenue Survey”

TOP 10 68%

$34B

R&D Spend for Medtech to Grow to $34B by 2022

Medtech R&D is growing at a rate of 4.3% a year, to reach $34B by 2022, up from $20B in 2009. The top 10 companies Medtronic, J&J, Siemens, Roche, Philips, Abbot, Boston Scientific, General Electric, Stryker, St. Jude, Danaher, Becton Dickinson, Baxter, Edwards and 3M will make up $23B of that spend, over 68%. Source: EvaluateMedTech® World Preview 2016, Outlook to 2022