Players in All Segments Face Challenges and Opportunities in Light of
Technological, Regulatory and Competitive Changes
BOSTON & SAN FRANCISCO–(Business Wire)–
“With the market for biologic* drugs growing much faster than that of drugs
based on chemical compounds, pharmaceutical, biotechnology, generic drug and
contract manufacturing companies are repositioning and forming new alliances in
order to succeed in a rapidly changing landscape.”
So said Harry Glorikian, managing partner of Scientia Advisors, a global
management consulting firm, based on a review of the biopharmaceutical market
released today.
In the review, Scientia reports that revenue growth for the small molecule drug
segment has slowed and will begin to decline within three years as numerous
blockbuster drugs go off patent and are replaced by less expensive generic
substitutes.
In contrast, the market for biologics, which comprises approximately one-third
of the overall pharmaceutical market, increased at a 21% compound annual growth
rate (CAGR) between 2003 and 2008, to $110B. While the CAGR for biologics has
since slowed to 8%, Scientia projects 2013 revenues of $165B, due largely to
rapid growth in monoclonal antibodies. Scientia also projects growth
opportunities in the vaccine and cell therapy segments.
Many biologics command relatively high prices and require complex and expensive
manufacturing processes. To keep costs down, biopharmaceutical companies are
increasingly seeking to outsource their manufacturing to contract manufacturing
organizations (CMOs).
In addition, “numerous biologic therapies with total revenues of $37B will have
lost patent protection by 2017, promising considerable opportunity in
biosimilars (government-approved new versions of branded biopharmaceutical
products following patent expiration),” Glorikian said. “As a result,
pharmaceutical, generic drug, and contract manufacturing companies are joining
forces to enter the biosimilars space. To be successful, they must take into
account the considerable technical, competitive, and regulatory hurdles that
will be involved.”
Scientia Advisors` review, entitled “Assessing the Biopharmaceutical Market:
Promises and Challenges,” is available for download at no charge from
www.scientiaadv.com.
*Biologics are therapeutics based on material from living organisms, as opposed
to small molecule drugs, which are based on chemical compounds.
Scientia Advisors, based in Boston and San Francisco, is a global management
consulting firm specializing in growth strategies for major and emerging
companies in health care, life sciences, biotechnology and nutrition.
Harris Communications Group
Anita M. Harris, 617-576-0906
anita.m.harris@harriscom.com
or
Scientia Advisors
Anne-Sophie Dankens
adankens@scientiaadv.com
Copyright Business Wire 2010