Frost & Sullivan: Growth Hormone Manufacturers To Seek New Indications, Drug Delivery Methods

According to a new research report Frost & Sullivan (Mountain View, CA), recent changes in reimbursement criteria are expected to limit the widespread use of growth hormones, forcing manufacturers to seek new indications and drug delivery methods for growth opportunities. The report, entitled "U.S., European, and Japanese Growth Hormone Markets," examines the drivers, restraints, and business trends affecting these competitive markets.

Revenues generated through the indication for GH deficiency in children dominate the market. While revenues from this indication, along with CRI and Turner's syndrome, are relatively large and stable, companies are increasing their marketing efforts to enhance awareness of recently approved indications, such as the adult GH deficiency indication and AIDS wasting.

Another major trend is the entrance of drug delivery companies to compete with current market participants to create alternative means of administering GH. The development of such technology, if proven effective, would revolutionize the market which is currently dependent on the injection method.

"New delivery technology would open the doors to the possible approval of many more indications, as well as increase customer willingness to undergo GH therapy," said Sue Wang, medical analyst at Frost & Sullivan. Alternative drug delivery methods being pursued by competitors include oral, transdermal, nasal, and inhalation administration routes.

Growth looks most favorable in the U.S., where the FDA recently approved indications to treat adult GH deficiency and AIDS wasting. The study forecasts the U.S. producing $366.4 million in 1998, with future growth depending on the market penetration of these new indications.

Even with healthcare cutbacks and price reduction, Japan still holds the world's largest market for growth hormones. Expected to hold 38% of the market in 1998, Japan should maintain the largest market throughout the forecast period.

Frost & Sullivan is an international marketing consulting company that monitors the medical industry for market trends, market measurements, and strategies.

For more information: Russ Pecoraro, Frost and Sullivan, 2525 East Charleston Rd., Mountain View, CA 94043. Tel: 650-237-4386. Fax: 650-903-0915. Email: rpecoraro@frost.com.