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# Much of Higher Drug Spending Not Going to Companies: PhRMA
- URL: https://www.fdaweb.com/much-of-higher-drug-spending-not-going-to-companies-phrma/
- Published: 2020-01-09T12:00:00.000Z
- Updated: 2026-09-14T15:58:02.000Z
- Author: David McFarland
- Tags: Drugs, #legacy-id-D5145812

A study funded by Pharmaceutical Research and Manufacturers of America says that it is a misconception that manufacturers retain the vast majority of drug spending. In fact, the study [says](https://ecommunications.thinkbrg.com/44/1613/uploads/vandervelde-pharmaceutical-supply-chain-2020-final-cleaned.pdf?intIaContactId=jAsmcSymnwaotAbOqKH5Vg%3d%3d&intExternalSystemId=1&ref=fdaweb.com), despite absolute growth in brand medicine spending at the point of sale, which increased from $354 billion in 2015 to $440 billion in 2018, growth in the amount retained by manufacturers remained in line with inflation over the same period. However, it says, supply chain and other entities retained 45.7% of total brand medicine spending in 2018, up from 33.2% in 2013.

“Despite growing recognition of the market dynamics that underpin these trends,” the study concludes, “little has changed in how the pharmaceutical supply chain is structured or with the incentives that exist among supply chain participants. We anticipate that absent new legislation or regulation to reform these aspects of the pharmaceutical supply chain, these trends will continue for the foreseeable future.”