Frost & Sullivan: New Indications, Delivery Methods Expand Growth Hormone Markets

A new report from Frost & Sullivan examines the drivers, restraints, and business trends affecting growth hormone markets in the United States, Europe, and Japan. The three competitive markets are expected to produce combined revenues of $1.1 billion in 1998.

Growth hormones (GH) are essential for the normal metabolism of body nutrients, carbohydrates, proteins, and lipids. Frost & Sullivan analysts predict that recent changes in reimbursement criteria will limit the widespread use of growth hormones, forcing manufacturers to seek new indications and drug delivery methods for growth opportunities.

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."

According to Frost & Sullivan, growth looks most favorable in the United States, where the FDA recently approved indications to treat adult GH deficiency and AIDS wasting. The study forecasts the United States 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 is expected to hold 38% of the market in 1998, maintaining the world's largest market for growth hormones throughout the forecast period, Frost & Sullivan said.

Edited by Beth Brindle

For more information: Keith Hammond, Frost & Sullivan, 2525 Charleston Road, Mountain View, CA 94043. Tel: 650-237-4384; Fax: 650-903-0915.

Report: 5657-52, "U.S., European, and Japanese Growth Hormone Markets." Publication Date: May 1998; Price: $2950.