Prescription drug spending in the U.S. climbed 10.2% in 2024, reaching nearly $806 billion, according to a report from the American Society of Health-System Pharmacists. A significant portion of this growth is attributed to the rapid rise of GLP-1 medications – drugs initially developed for diabetes treatment that are now widely used for weight loss. This category not only topped the list in total expenditures but also emerged as the fastest-growing segment in the market.
As the table below shows, GLP-1s claimed the top two spots in 2024 drug spending and accounted for more than one-third of the top 10 drugs overall. (Notably, dulaglutide, another GLP-1, ranked just outside the top 10 at $11.7 billion.)
An expanded list of top drug expenditures is available at Becker’s Hospital Review.
Other highlights from the report include:
- Increased utilization (+7.9%) and new drug introductions (+2.5%) were the primary drivers of higher spending in 2024, while drug prices remained essentially flat (-0.2%).
- U.S. drug spending is projected to grow by another 9% to 11% in 2025.
- Oncology drugs continue to be a major cost driver, with double-digit spending growth due to expensive new therapies and expanded treatments.
- The introduction of new generics and biosimilars is expected to help curb future spending by offering lower-cost alternatives to high-priced brand-name drugs.