Living Longer, Living Stronger

Life or longevity is the driving force of prescription drug research and development. The improved health outcomes provided by new drug therapies is a significant factor in increased longevity of the American and global population and high-profile discoveries are continuously expanding the rate of prevention for life-threatening events. With new drugs, longer lives, and an aging population come new challenges.

According to the AARP, the fastest growing segment of the U.S. population is individuals 85 years old and older, although they currently represent less than 6% of the U.S. population. The Baby Boomer generation (those between 40-59 years old) are the driving force behind the aging of America, which will drive the 65 and older segment from 16% to 20% by 2020 (Current Population Survey (CPS), 2003 Annual Social and Economic Supplement). With aging comes increasing health needs, which perpetuate the need for drug discovery and pipeline development.

Globally, "population ageing is unprecedented, without parallel in the history of humanity. Increases in the proportions of older persons (60 years or older) are being accompanied by declines in the proportions of the young (under age 15). By 2050, the number of older persons in the world will exceed the number of young for the first time in history." (World Population Ageing : 1950-2050, Department of Economic and Social Affairs, Population Division, United Nations, New York: 2001).

An aging population, with growing health needs, drives the increased fulfillment of prescription drugs. Eight out of ten (80.6%) households in the U.S. filled at least one prescription drug in the 12 months ending June 2004; an increase from 78.1% the 12 months prior and an even higher jump from the penetration evident in 2000 of 70.2%. Among American seniors, the rate is even higher. Nearly all (87%) Americans over 65 report taking prescription drugs at least once in the past year, as did 84% of those aged 50-64, compared to about two-thirds of those under 50.

Despite the large proportion of seniors that have taken a prescription drug in the past year, non-fulfillment continues to be an issue, as the number of seniors with insurance to support payments for multiple prescription drugs is still much lower than average. In 2003, 23% of seniors paid full price to fill their prescriptions, greater than the 15% of average Americans who did the same. The rate of non-fulfillment for prescriptions received is particularly evident among seniors whose annual household income is less than $20,000 (29% did not have drug insurance to pay for their prescription in 2003; a decline from a high of 37% six years prior).

Drug costs are more pressing to Americans than issues of drug safety, particularly among seniors. Nearly half (43.8%) of respondents surveyed in an independent Ipsos poll strongly agree that rising drug costs are due to drug companies charging higher prices to increase their profit margins. American drug costs continue to be prohibitively expensive for many seniors, particularly the price of multiple treatments or branded drugs where no generic alternative is available. As a result, many seniors would be likely to buy their prescription drugs outside of the U.S. from countries such as Canada, if legalized.

The growing senior population will have a dramatic, global impact on the healthcare industry, enabled by their increased numbers to exert exceptional pressure and influence on research and development priorities, insurance companies' and employers' health care coverage policies, manufacturers' and retailers' supply and pricing, and local, national, and international legislation, while also making unprecedented demands on the world's health programs. Every sector of the healthcare industry is set for upheaval, and only those that can manage the needs and desires of this new demographic profile will survive.