Cost Savings from Innovative Drugs

Newer drugs save seven times more in non-drug spending than they cost

  • Savings from reduced hospital and nursing home admissions exceed cost of using newer drugs
  • Prescription drugs can reduce the need for expensive surgeries and hospital stays


Newer drugs save nine times their estimated cost in value of increased workforce participation

  • New drugs reduce lost work hours due to illness, hospitalization (Lichtenberg)
  • Medicare ultimately saves $2.06 for every additional dollar it spends on drugs (Shang & Goldman)

Healthier 65+ population saves Medicare costs

  • Healthier seniors reduce annual pre-beneficiary Medicare costs
  • Health promotion and prevention strategies can pay off even more in the future
  • Future elderly will be able to work and live independently longer

More than 3,700 new biotherapies in development

  • Cancer: 800+
  • Alzheimer’s: ~100
  • Diabetes: 200+
  • Cardiovascular: ~300