Strategic Analysis of the World Pediatric Pharmaceuticals Markets

Published by: Frost & Sullivan

Published: Mar. 4, 2004

Table of Contents

Abstract

The key challenge facing the pediatric market is "economics". Children form a relatively small segment of the population, at about 20 to 25 percent of the total adult market in any region. Owing to the high cost of developing drugs - estimated at over $800 million from discovery to commercialization - pharmaceutical manufacturers are compelled to address the larger markets first. This often means postponing or omitting drug testing for children. Other issues that are related to testing in children have reinforced this trend. These issues include the difficulty of recruiting child volunteers for clinical testing and the higher rates of noncompliance in such tests. Patent extensions for pediatric testing offered by the U.S. FDA have mitigated this trend to an extent; however, many pharmaceutical manufacturers remain reluctant to invest in pediatric testing.

This strategic analysis offers gainful insights into future trends in the pediatric pharmaceuticals market that can help investors study growth patterns and obtain maximum return on investment.

New Pediatric Act and Patent Expansions Force Dramatic Change

"The market for pediatric drugs is likely to soon undergo dramatic expansion due to the new U.S. Pediatric Research Equity Act that enables the FDA to request drug data for children, as well as the growing realization that drugs produce reactions that are markedly different in children than they do in adults," says the analyst.

The growth rate is likely to be further enhanced by the availability of U.S. patent extensions for the drugs whose manufacturers conduct pediatric studies and also by the expansion of some contract research organizations into pediatric drug testing. Increased publicity of the need for pediatric drug testing is likely to promote awareness of the issue among physicians and patients, further driving the market.

This growth, however, is expected to be mitigated by a variety of factors including the development of vaccines to eliminate many widespread childhood illnesses, relatively smaller market sizes for conditions primarily affecting children - low birth weight infants, cystic fibrosis - and the low purchasing power of patients in areas with the greatest number of children. In addition, the global and regional economies that compel drug developers to create blockbuster drugs while containing costs are likely to influence pediatric drug testing. This pressure is anticipated to reduce with economic revival. However, if the current economic malaise continues and growth remains limited, pressure on the healthcare industry is likely to be strong, which will impact the drug developer organization's willingness to commit funds for pediatric testing.

Global Revenues Expected to Grow with Clearance for Existing Products and Introduction of New Products

With clearance given to several current pediatric products and the introduction of new products specifically targeting children, revenues in this market are expected to grow globally. Gains can be anticipated in sales of allergy and respiratory products, anti-infectives, central nervous system (CNS) drugs, and attention deficit hyperactivity disorder (ADHD) drugs. Sales of other medicines such as obesity drugs are also likely to improve, as they receive approval for use in children. Over-the-counter (OTC) drug sales are likely to remain steady and are expected to grow on the strength of increased usage of OTC children's ibuprofen, and other popular products.

Get Full Details About This Report >>

About MarketResearch.com
MarketResearch.com is an online aggregator selling over 160,000 market research reports, company profiles and country profiles from over 600 research firms. Our reports will provide you with the critical business and competitive intelligence you need for strategic planning and marketing research. Coverage includes the US, UK, Europe, Asia and global markets.