Expenditures on prescription drugs account for more than 10 percent of
the $1.5 trillion annual domestic healthcare market. However, a
significant portion of the U.S. population – 45 million according to
recent estimates or more than 15 percent of the total population –
remains uninsured or underinsured, excluded from receiving the drugs
critical to health, longevity and quality of life.
The market for delivering prescriptions to medically uninsured and
underinsured consumers is $8 billion strong.
The total market for prescription drugs is expected to top $446 billion
in the next decade due to several market drivers:
An
Aging Population. More than 40 percent of the U.S.
population will be over the age of 50 by the end of 2005. This
demographic represents the largest percentage of new prescriptions
filled.
Increased Life Expectancy.
The Centers for Disease Control and Prevention reported that life
expectancy in the United States reached an all time high of 77.2 years
in 2001, an upward trend broken only once in the past decade.
Introduction of New Drugs.
The introduction of new drugs for new indications and improvements on
existing drugs are fueling continued growth for the pharmaceutical
industry.
Direct-to-Consumer Advertising.
Pharmaceutical
companies have dramatically increased their focus on
direct to consumer (DTC) advertising. Industry analyst Verispan has
estimated that more than 70 percent of consumers identify drugs for
self-diagnosed conditions largely via DTC advertisements, and doctors
have been shown to issue prescriptions for drugs requested by consumers
more than 90 percent of the time.
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