Biosimilars To Erode Biologics Market, GlobalData Reports
By Cyndi Root
GlobalData, a market analysis company, announced in a press release that biosimilars will erode the branded biologic therapy market beyond 2019. The report, titled “PharmaSphere: Regulatory Frameworks and Product Pipelines in the Global Biosimilars Market,” provides analysis of the market and reasons for the shift, including patent expirations and redefined regulatory requirements.
Joshua Owide, GlobalData’s Director of Healthcare Industry Dynamics, said that the biosimilars market is already highly lucrative, with biosimilar deals in the last seven years being worth over $10.7 billion.
GlobalData says that biosimilars will affect the biologics market negatively. Despite a Compound Annual Growth Rate (CAGR) of 8.3 percent, the biologics market will only grow from $162 billion in 2013 to $262 billion by 2019. The analysis shows several factors involved in the restructuring.
- Patent expirations – many branded drugs will come off patent protection
- Regulations – regulatory bodies in the U.S. and worldwide are clarifying the regulatory framework for biosimilars
- Slow economic growth in the U.S.
- Austerity measures worldwide
- Aging populations that demand value in healthcare
GlobalData stated that some national governments, like South Korea’s, are using biosimilar manufacturing as a way to create new jobs. Mr. Owide said that South Korea aims to create 120,000 new jobs and capture 22 percent of the global biosimilars market by 2020.
Since some branded biologics are very expensive, the biosimilar cost, which is20 to 30 percent lower, is a significant reason for biosimilars gaining market share. Additionally, contract manufacturing organizations (CMOs) and contract research organizations (CROs) such as Lonza, Celltrion, Quintiles, and Paraxel are boosting biosimilars.
GlobalData Biosimilars Report
The GlobalData report is a strategic analysis discussing trends, regulatory issues, mergers, acquisitions, collaborations, and operational strategies of key companies. Built from proprietary databases, research efforts, and in-house analysis, the GlobalData report provides insight for interested parties in the industry. View analysis on the regulation landscape in the U.S. EU, China, and India. Companies profiled include Actavis, Amgen, Dr. Reddy’s, Hospira, Merck, Pfizer, Sandoz, Strides Arcolab, Synthon, Teva, and Viropro.