Why Oncology Medicine Spending is on the Rise

Summary

Oncology medicine spending is expected to grow by 75% over the next five years due to certain factors: 

  • Growing number of cancer cases.
  • Expansion of therapies for cancer.
  • Expansion of access.
  • Personalized medicine.

Introduction

Oncology medicine spending is rising quickly. Over a five-year period, spending is expected to grow almost 75%.

According to recent data, global spending on cancer medicines was about $252 billion in 2024 and is expected to reach around $441 billion by 2029.

Let’s examine the causes for the spending increase below.

1. Growing number of cancer cases

In 2024, the American Cancer Society projected more than 2 million cases of cancer in the U.S. for the first time. Cancer cases are on the rise in part due an aging population and an increase in diagnoses of the most common types of cancers, contributing to cancer being second only to heart disease among leading causes of death in the U.S. As more people are diagnosed and treated for cancer, there will be greater demand for cancer medicines.

2. Expansion of therapies for cancer

The oncology pipeline is growing rapidly. In 2024, there were 2,162 cancer drugs in clinical trials. Over 50% of drugs in development are for cancer, including  antibody-drug conjugates, which combine targeted therapy and chemotherapy, cell and gene therapies, and immunotherapy. In 2025, of the 46 newly FDA-approved drugs, at least 14 were approved to treat cancer.  Of those, 57% are orally administered.  Currently, an estimated eight additional oral oncology therapies are pending approval in 2026, with breast cancer and non-small cell lung cancer both having two therapies pending approval this year. Looking forward, novel oncology therapies account for over a quarter of all drugs in the pipeline, over a third of which are oral.

3. Expansion of access

With improvements in testing, detection, and reimbursement, more people are receiving treatment over longer periods of time. Additionally, Americans have access to 94% of new cancer medicines.

4. Personalized medicine

Advances in personalized medicine improve mortality rates and give patients more focused treatment. In addition, genetic testing can be used to detect cancer risk. For example, women can be tested for BRCA1 and BRCA2 genes, which can help detect risk for breast and ovarian cancer.

Final thoughts

The doubling of oncology spend signifies not just more cases of cancer but also a time of transformation and broader access to a variety of treatments. Greater access to therapies and new drugs on the horizon can lead to better outcomes for patients.

VytlOne has the right solution to save employers costs and help improve health outcomes for them and their employees. We help reduce oncology medication waste and simplify the management of complex oncology treatments.

Contact your VytlOne representative today to learn more.

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