Investment in new generation biologics using technology such as physiology simulation modeling is helping the global market for biologics to grow at nearly 10% year on year, a report from The Business Research Company shows. Physiology simulation modeling gives test results within hours in the early stages of drug development. Biologics' growth rate and the level of investment might be even higher if it were not that governments around the world are encouraging biosimilars in their efforts to reduce healthcare costs. Biosimilars are pharmaceuticals that are developed to have similar properties to a biologic that has already been approved. For example, In India, a new biosimilar policy called the ‘Guidelines on Similar Biologics’ prepared by the Central Drugs Standard Control Organization (CSDCO) is expected to give a major boost to the Indian biosimilars industry, so making it more competitive in the global market. In the EU, a pathway for approving biosimilar medicines has existed since 2003. These cheaper alternatives that compete with biologics discourage investment by limiting the time span over which the innovating companies can earn a return on their investment.
The ratio of biosimilars to biologics by sales value is highest in Japan, followed by India and lowest in the EU.
Biologics are very large complex molecules manufactured in living systems such as microorganisms, animal cells or plant cells. They are produced using recombinant DNA technology and are composed of sugars, proteins, nucleic acids or a combination of these substances.
Monoclonal antibodies (mAbs) are the largest segment of the biologics market, worth 42.5% of the global total, followed by therapeutic proteins at 36% and vaccines at 21%. All three segments are growing at over 9% year on year.
The anti-cancer therapeutic area of the monoclonal antibodies segment is the largest subsegment, worth $46.97B, followed by the metabolic disorders area of the therapeutic proteins segment and the anti-infective therapeutic area of the vaccines segment.
North America's biologics market is the largest, worth nearly 40% of the total, followed by Western Europe at 23% and Asia Pacific at 16%. By country, the market in the USA dominates, being worth $61.1B, nearly seven times as much as the second-largest, Japan. The largest single segment is the US market for monoclonal antibodies, which is worth $27.1B.
The biologics market is quite concentrated: the top five competitors' shares amounted to 59% of the total in 2017. Johnson & Johnson, Hoffman-La Roche, and Bristol-Myers Squibb are the three largest players.
Where to Learn More
Read the biologics market report from The Business Research Company for information on the following:
SOURCE: The Business Research Company