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Commercial Insight: Antidiabetics in Australia - Reimbursement status shapes novel classes

Published by: Datamonitor

Published: Oct. 20, 2009 - 154 Pages


Table of Contents


ABOUT DATAMONITOR HEALTHCARE
About the Cardiovascular and Metabolic pharmaceutical analysis team
CHAPTER 1 EXECUTIVE SUMMARY
Strategic scoping and focus
Datamonitor insight into the disease market
Related reports
Upcoming related reports
CHAPTER 2 MARKET DEFINITION
Market definition for this report
CHAPTER 3 MARKET OVERVIEW
Current and future market overview
The total Australian antidiabetic market is expected to rise from $233m in 2008 to $416m in 2018
The current insulin market: Lantus leads both its class and the overall insulin market in Australia
The future insulin market: growth will eventually slow down
The current non-insulin market: sales in thiazolidinedione class hit by Avandia scare, but class still dominates
The future non-insulin market: incretin mimetics will dominate
Opportunities and threats
Opportunities
Diabetes prevalence in Australia will continue to rise
There are over 1 million people with diabetes in Australia
The increase of obesity in Australia is linked to a surge in type 2 diabetes
Physical inactivity as a risk factor for type 2 diabetes
The impact of Australia's aging population on the prevalence of type 2 diabetes
The Aboriginal and Torres Strait Islander population has a higher risk of developing diabetes
Half of Australian diabetes patients do not reach HbA1c target of <7%
HbA1c targets are loosened
The Australian government subsidizes diabetes-related products
Launch of novel compounds will replace generics and stimulate the non-insulin market
Dipeptidyl peptidase-IV inhibitors will move to second-line therapy
Threats
Health reforms aim to decrease the spending on antidiabetic drugs and diabetes overall
Australian government attempts to reduce overweight and obesity numbers
High costs in the treatment of complications of diabetes further incentivizes government to prevent increasing incidence
Novel drugs may struggle to get on the Pharmaceutical Benefits Scheme, as Byetta's case shows
Impact of biosimilars on insulins will become a threat in the future
The Therapeutic Goods Administration may follow the US Food and Drug Administration in its focus on cardiovascular risks
Shift towards private insurance may translate into significant growth opportunities for branded pharmaceuticals
CHAPTER 4 BRAND DYNAMICS
Overview of competitive landscape
Patient acquisition process
Patient care paths
Points of influence in the patient care path
Trigger point 1: ensure high-risk individuals are screened
Trigger point 2: promote use of metformin straight after diagnosis
Trigger point 3: influence initial choice of oral hypoglycemic agent
Trigger point 4: impact switching decisions
Trigger point 5: influence choice of insulin treatment
Treatment guidelines
Australian formulary status
Actos (pioglitazone; Takeda/Eli Lilly)
Drug profile
Product positioning
SWOT analysis
Brand forecast to 2018
Scare around Avandia will continue to contribute to Actos's sales
Positive results from the PPAR trial would add further support to Actos's competitive profile
The launch of Actoplus Met will boost Actos's franchise
The launch of generics will greatly impact Actos's revenues from 2011 onwards
The launch of novel drug classes will significantly slow down growth in sales over the next decade
Januvia (sitagliptin; Merck & Co)
Drug profile
Product positioning
SWOT analysis
Brand forecast to 2018
Approval and reimbursement of further indications would give revenues a boost
Positive clinical trial outcomes would help to build Januvia's profile
The launch of a sitagliptin/pioglitazone fixed-dose combination in Australia will strengthen the sitagliptin franchise
Avandia safety scare led some physicians to switch to Januvia
Novel dipeptidyl peptidase-IV inhibitors coming to market will significantly slow down growth in Januvia sales over the next decade
Launch of saxagliptin/metformin fixed-dose combination will impact Janumet's sales
Byetta (exenatide; Amylin/Eli Lilly)
Drug profile
Product positioning
SWOT analysis
Brand forecast to 2018
Positive outcome of pricing negotiations will be essential for improved uptake of Byetta
The launch of once-daily glucagon-like peptide-1 agonists will significantly slow Byetta's growth in sales over the next decade
Once-weekly glucagon-like peptide-1 agonists will dominate their class
Lantus (insulin glargine; Sanofi-Aventis)
Drug profile
Product positioning
SWOT analysis
Brand forecast to 2018
Brand loyalty will protect Lantus from main competitor Levemir, despite a number of new clinical trials
Cancer safety scare predicted to have minimal impact
NovoRapid (insulin aspart; Novo Nordisk)
Drug profile
Product positioning
SWOT analysis
Brand forecast to 2018
Number of clinical trials aim to shift even more patients to NovoRapid
CHAPTER 5 CASE STUDY - THE PROCESS FROM TGA APPROVAL TO PBS LISTING
Role of the Therapeutic Goods Administration
Reforms aim to make Therapeutic Goods Administration's approval process faster and more transparent
Role of the Pharmaceutical Benefits Advisory Committee
High level of evidence needed to show clinical and cost-effectiveness points to a barrier of market entry
Role of the Pharmaceutical Benefits Pricing Authority
Reforms split the Pharmaceutical Benefits Scheme into two formularies
Pricing methods used by the Pharmaceutical Benefits Pricing Authority
Reference pricing method is mainly used for products in Formulary 1
Cost Plus method is mainly used for products in Formulary 2
Need for cost-effectiveness analysis slows down Pharmaceutical Benefits Scheme listing considerably
Byetta's reimbursement is held up over pricing negotiations
The difficulty lies in the number of units of insulin glargine that Byetta should be compared with
Possible outcomes and their impact
Uptake Januvia is low due to limited approval and reimbursement
BIBLIOGRAPHY
Articles
Websites
Press releases
APPENDIX A - THERAPEUTIC RELATIVITY SHEET FOR ANTIDIABETICS
ATC A10 - Drugs used in diabetes (effective date: May 2009)
APPENDIX B - MARKET ASSUMPTIONS
Data definitions, limitations and assumptions
Standard units
Derivation of sales forecasts and pricing trends
Exchange rates used in this report
Forecast methodology
APPENDIX C
Contributing experts
Conferences attended
Report methodology
About Datamonitor
About Datamonitor Healthcare
About the Cardiovascular and Metabolic pharmaceutical analysis team
Disclaimer
List of Tables
Table 1: Sales and growth of antidiabetics in Australia by class, 2008 and 2018
Table 2: Prevalence estimates of diabetes mellitus (type 1 and 2) in Australia and the seven major markets, 2007
Table 3: Prevalence of known diabetes mellitus and newly diagnosed diabetes mellitus by age and sex in Australia, 1999-2000
Table 4: Summary of opportunities and threats in the antidiabetics market in Australia, 2009
Table 5: Sales forecasts of antidiabetics in Australia ($m), 2008-2018
Table 6: Formulary status in Australia for leading antidiabetic therapies, 2009
Table 7: Actos (pioglitazone) - Drug profile, 2009
Table 8: Impacting factors on the revenues of Actos in Australia, 2008-2018
Table 9: Januvia (sitagliptin) - Drug profile, 2009
Table 10: Impacting factors on the revenues of Januvia in Australia, 2008-2018
Table 11: Key clinical trial summary for Januvia (sitagliptin), 2009
Table 12: Clinical profile of Januvia, Galvus and Onglyza
Table 13: Byetta (exenatide) - Drug profile, 2009
Table 14: Impacting factors on the revenues of Byetta in Australia, 2008-2018
Table 15: Outcomes of the DURATION-1 and DURATION-2 trials compared with pivotal trial outcomes of Byetta, Januvia and Actos
Table 16: Lantus (insulin glargine) - Drug profile, 2009
Table 17: Impacting factors on the revenues of Lantus in Australia, 2008-2018
Table 18: Key clinical trial summary for Levemir (insulin detemir),
Table 19: Key clinical trial summary for Lantus (insulin glargine), 2009
Table 20: NovoRapid (insulin aspart) - Drug profile, 2009
Table 21: Impacting factors on the revenues of NovoRapid in Australia, 2008-2018
Table 22: Key clinical trial summary for NovoRapid (insulin aspart), 2009
Table 23: Calculation of monthly price ($) of 25 and 75 units of insulin glargine (Lantus)
Table 24: Exchange rates from USD, 2008
List of Figures
Figure 1: Sales of the Australian insulin and non-insulin diabetes market, 2004-2018
Figure 2: Indexed total insulin sales by class in Australia, 2004-08
Figure 3: Insulin sales by class in Australia, 2008-2018
Figure 4: Insulin sales by company in Australia, 2008-2018
Figure 5: Indexed total non-insulin sales by type in Australia, 2004-08
Figure 6: Non-insulin sales by class in Australia, 2008-2018
Figure 7: Prevalence of diabetes in Australia by body mass index category, 1981 and 1999-2000
Figure 8: Population pyramids for Australia, 2009 and 2047
Figure 9: Changing diabetes map, 2008
Figure 10: Projected health and residential aged care expenditure for type 1 and 2 diabetes in Australia, 2002-03 to 2032-2033
Figure 11: Type 2 diabetes patient care path
Figure 12: Type 1 diabetes patient care path
Figure 13: Common one and two insulin injection regimens
Figure 14: Treatment tree as recommended by the 2008/09 edition of the Australian Diabetes Management in General Practice guidelines
Figure 15: Actos (pioglitazone) SWOT analysis, 2009
Figure 16: Sales of Actos, Avandia and generics in Australia, 2008-2018
Figure 17: Indexed volume (standard units) sold for Actos, Avandia and the total thiazolidinedione class in Australia, 2007-08
Figure 18: Sales of Actoplus Met, Avandamet and generics in Australia, 2008-2018
Figure 19: Januvia (sitagliptin) SWOT analysis, 2009
Figure 20: Sales of Januvia in Australia, 2008-2018
Figure 21: Sales of Januvia and sitagliptin/pioglitazone in Australia, 2008-2018
Figure 22: Sales of Januvia, Galvus, Onglyza and Ondero in Australia, 2008-2018
Figure 23: Byetta (exenatide) SWOT analysis, 2009
Figure 24: Sales of Byetta in Australia, 2008-2018
Figure 25: Sales of Byetta and Victoza in Australia, 2008-2018
Figure 26: Sales of Byetta, Victoza, Byetta LAR and taspoglutide in Australia, 2008-2018
Figure 27: Indexed sales of Lantus and Levemir and their price per standard unit in Australia, 2004-08
Figure 28: Lantus (insulin glargine) SWOT analysis, 2009
Figure 29: Sales of Lantus and Levemir in Australia, 2008-2018
Figure 30: NovoRapid (insulin aspart) SWOT analysis, 2009
Figure 31: Sales of NovoRapid, Humalog, Actrapid, Apidra and Humulin in Australia, 2008-2018
Figure 32: Path of approval on the Australian Pharmaceutical Benefits Scheme
Figure 33: Factors that the Australian Pharmaceutical Benefits Advisory Committee has identified as informing its decision-making
Figure 34: Factors that the Australian Pharmaceutical Benefits Pricing Authority has identified as informing its decision-making
Figure 35: The split between the Australian Formulary 1 (F1) and Formulary 2 (F2)
Figure 36: Average time from ADEC recommendation to Australian PBS listing for major submissions using a cost-effectiveness analysis approach
Figure 37: Timeline of Januvia's approvals by the FDA, EMEA and TGA

Abstract

Introduction

Datamonitor expects the Australian antidiabetics market to reach $416m by 2018. The growth will be driven by the launch of new drug classes, notably the incretin mimetics, and large growth in patient numbers. Although strongest growth is expected in the non-insulin market, the insulin market will continue to dominate, generating revenues of $224m 10 years from now.

Scope
  • Forecast for marketed and late-stage pipeline antidiabetic products in Australia
  • Assessment of Australia-specific drivers and resistors likely to impact the market
  • Future market outlook for individual products taking into account key market events, in particular patent expiry and competitor launch dates
  • Case study examining the approval and reimbursement process in Australia in general and for several antidiabetics in specific
Highlights

The Australian antidiabetics market is expected to grow from $233m in 2008 to $416m in 2018 at a rate of 6% CAGR. Significant unmet needs in diabetes fuel a large pipeline. The epidemiological growth of the market, impacted by the obesity epidemic and improved diagnosis rates, is further driving the market.

In 2008, the long- and fast-acting insulin classes dominated the insulin market. This situation is not expected to change throughout the forecast period as there is very limited activity within the insulin antidiabetic pipeline and no serious challenges to the market leading therapies.

The strong market position of Avandia in 2007 has all but been destroyed by a meta-analysis published in mid-2007. Despite positive outcomes from GlaxoSmithKline's RECORD trial in 2009, the product will not regain market share before its patent expiry.

Reasons to Purchase
  • Identify key opportunities and threats that will impact the use and uptake of new and existing products
  • Quantify the future size and scope of the Australian antidiabetics market and predict the performance of key compounds
  • Understand critical success factors in growing and defending antidiabetic brand franchises from new entrants and generics
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