In the year 2015, the global market for biopharmaceuticals was valued at USD 176.9 billion. It is estimated at USD 192.2 million for the year 2016 and is projected to reach USD 291 billion by the year 2021. The estimated CAGR during the forecast period (2016-2021) is 8.6%.
Current trends in biopharmaceuticals market:
On 6th September, Arizona-based company HSRx Biopharmaceutical announced that its orally administered broad-spectrum antiviral drug HSRx 431™ is effective against the Zika virus. They plan to test their claim by conducting human trials in 2017, and if these are found to be successful, they plan to seek accelerated drug approval from the U.S. FDA.
With the patents of most of the conventional blockbuster drugs expiring, biopharmaceuticals are currently being considered the next big thing in pharmaceutical industry. Biopharmaceuticals currently represent a large segment of product pipelines of most of the major pharmaceutical companies. More than half of the current top 20 blockbuster drugs are biopharmaceuticals. Monoclonal antibodies currently own the largest market share in terms of value in the global biopharmaceuticals market. Some of the top-selling monoclonal antibodies include Adalimumab, Infliximab, Rituximab and Bevacizumab. Vaccines represent the second largest segment in biopharmaceuticals market, followed by monoclonal antibodies. Recently, some of the vaccines also achieved blockbuster status with the introduction of vaccines like Gardasil. Despite the large market size in terms of value, monoclonal antibodies do not lead the biopharmaceuticals market in terms of volume. Vaccines currently represent the largest market segment in the global biopharmaceuticals market in terms of volume. Biopharmaceuticals currently represent around 20% of the entire pharmaceutical market revenue. This percentage share of biopharmaceuticals in global pharmaceutical market is only expected to increase in the future. The revenue from sales of biopharmaceuticals represents the major chunk of the total company revenue for several large companies, such as Novartis, AbbVie and Pfizer etc. Biopharmaceuticals can be considered as one of the most sophisticated and groundbreaking achievements in modern science. Unlike conventional pharmaceuticals that are synthesized by chemical synthesis, biopharmaceuticals are synthesized through biological synthesis in living systems. Due to their biological origin, the biopharmaceuticals show much greater efficacy and efficiency when compared to conventional pharmaceuticals. Since the biopharmaceuticals act by modulation of physiological processes at a cellular level, they can effectively treat the disorders that conventional pharmaceuticals could not treat.
Biopharmaceuticals are the preferred choice of treatment for biomolecule deficiency disorders like hormone deficiency or growth factor deficiency. They can also be used for stimulating and/or suppressing immune reactions, which makes them an ideal treatment option for autoimmune disorders. The most important contribution of biopharmaceuticals is in the field of targeted drug therapy and the use of biopharmaceuticals is revolutionizing this field.
Since biopharmaceuticals can technically modulate any physiological pathway that has been fully understood, there is a huge growth potential for the biopharmaceuticals market.
As a result of the huge advantages that biopharmaceuticals offer over conventional medicines, their use is continuously increasing. This, combined with the ability of biopharmaceuticals to treat diseases that were previously untreatable, has resulted in a huge market demand, which in turn has increased the profit margins for manufacturers. All these factors together are driving the biopharmaceuticals market.
Factors like complicated and cumbersome regulatory requirements, high-end manufacturing requirements and continuously increasing demand for affordable biopharmaceuticals (which is not possible due to huge development and manufacturing costs) are hindering the market growth.
Currently, the biopharmaceuticals market has great opportunities for both new market entrants and existing players. The patents for several biopharmaceuticals are expiring in the next five years and this creates an opportunity for biosimilars manufacturers. Similarly, no company has yet found a way to effectively reduce the cost of biosimilars and there is a huge market opportunity for any company that can solve this problem.
Despite many growth factors driving the biopharmaceuticals market, the market faces severe challenges. These need to be overcome in order to tap the full potential of this market. One such factor is the requirement of cold storage for almost all the biopharmaceuticals. This limits their reach in the developing and third world countries. In addition, the process of developing a biopharmaceutical is also extremely difficult, as it involves living biological systems. This also limits the scalability, as scaling a biological system is different from scaling an equipment-based system.
The current biopharmaceutical products pan across several therapeutic areas and product classes. Based on this, the biopharmaceutical market can be segmented into products and therapeutic area. Based on the product, the biopharmaceuticals market can be segmented into monoclonal antibodies, recombinant growth factors, purified proteins, recombinant proteins, recombinant hormones, synthetic immunomodulators, vaccines and recombinant enzymes, among others. Among these, the monoclonal antibodies happen to be the largest market segment with 37.31% share in the year 2015.
Based on the therapeutic area/application, the biopharmaceuticals market can be segmented into oncology, inflammatory and infectious diseases, autoimmune disorders, metabolic disorders, hormonal disorders, disease prevention, cardiovascular diseases, neurological diseases and other diseases. Among these, oncology happens to be the largest segment with 30.5% share in the year 2015.
Geographically, the biopharmaceuticals market can be segmented into North America (United States, Canada and Mexico), Europe (The United Kingdom, Germany, France, Italy, Spain and Rest of Europe), Asia-Pacific (Japan, China, Australia, South Korea, India and Rest of Asia-Pacific), Middle East & Africa (Gulf Cooperation Council Countries, South Africa and Rest of Middle East & Africa) and South America (Brazil, Argentina and Rest of South America). Among these, North America was found to be the largest market shareholder with 44.5% of the share in the year 2015.
Due to the huge profit margins and growth prospects, biopharmaceuticals have garnered the attention of several large drug development companies. Some of the key players in the market are:
Abbott Laboratories AMgen AstraZeneca Biogen Inc. Bristol-Myers Squibb Eli Lilly & Company GlaxoSmithKline Novo-Nordisk Pfizer Inc. Roche Holding AG Sanofi Aventis What the Report Offers
Market analysis for the global biopharmaceuticals market, with region-specific assessments and competition analysis. Market definition along with the identification of key drivers and restraints. Identification of factors instrumental in changing the market scenario, rising prospective opportunities, and identification of key companies that can influence this market on a regional scale. Extensively researched competitive landscape section with profiles of major companies along with their market share. Identification and analysis of the macro and micro factors that affect the global biopharmaceuticals market. A comprehensive list of key market players along with the analysis of their current strategic interests and key financial information. A wide-ranging knowledge and insights about the major players in this industry and the key strategies adopted by them to sustain and grow in the studied market. Insights on the major countries/regions in which this industry is blooming and the regions that are still untapped.