The United States was the largest national pharmaceutical market in 2022, making up over 42 percent of the total pharmaceutical spending worldwide. China is the second-largest market with a market share of around eight percent (although including only the hospital makret).
International differences in drug prices
The worldwide pharmaceutical market was valued at approximately 1.48 trillion U.S. dollars in 2022. Sales of pharmaceuticals in the United States generated around 630 billion U.S. dollars in 2022, over 500 billion U.S. dollars more than any other country. One reason for the disparity between countries is the price of prescription medications: in the United States, the prices of branded drugs increased significantly between 2011 and 2019. Many pharmaceutical manufacturers argue that prices need to be raised to not only recoup research costs but also to maintain profit margins because of the larger rebates negotiated by pharmacy benefits managers.
Prescription drug prices are a bitter pill to swallow
With an average spend of 1,310 U.S. dollars per person, the United States had the highest pharmaceutical spending per capita worldwide in 2021. Brand name medications are particularly expensive in the country: the average price of Humira in the United States is far higher than in other markets. Branded drugs enjoy the protection of patents, and the lack of competition means both manufacturers and pharmacies can charge what the market will bear.
