IMARC Group, one of the world‘s leading research and advisory firms, finds in its new report “Global Biopharmaceutical Market Report & Forecast 2010-2015” that driven by a huge patient pool, rapid economic growth and improving intellectual property rights, the sales of biopharmaceuticals in the seven emerging markets – Russia, China, Turkey, Mexico, South Korea, India and Brazil will nearly triple from the current US$ 5.3 Billion to more than US$ 13.6 billion by 2015.
As per the research findings, the treatment costs associated with biopharmaceuticals are extremely high and at times can exceed hundreds of thousands of dollars a year. Since most of the healthcare costs in the emerging markets are paid out-of-pocket, most patients cannot afford these treatments. However, the seven emerging markets taken together account for more than three billion people, representing more than 45% of the total Global population. So even if a small percentage of patients are able to afford these drugs, it still represents a huge market potential. Moreover, the GDPs of emerging markets have witnessed strong growth during the last few years, and this is likely to continue in the coming years as well. This is expected to create a huge middle class that can afford innovative treatments.
The report also suggests that despite the huge opportunity, these markets will not be easy for western manufacturers to penetrate. A major challenge for manufacturers entering these markets is the fact that emerging markets are more complex and different from the developed markets as well as from each other. A strategy that will work in Turkey will not work well in India or China. Manufacturers will have to devise strategies, customized as per the requirements of the individual markets.
IMARC’s new report “Global Biopharmaceutical Market Report 2010-2015” gives a deep insight into the global biopharmaceutical market. The research study serves as an analytical as well as a statistical tool to understand the strengths, weaknesses, opportunities, threats, market trends, geographical structure, therapeutic structure, competitive structure and the outlook of the global biopharmaceutical market till 2015. This report can serve as an excellent guide for investors, researchers, consultants, marketing strategists, and all those who are planning to foray into the global biopharmaceutical market in some form or the other.
Biopharmaceuticals enjoy a higher approval success rate compared to traditional small molecule drugs. They, however, require higher investments and take longer development times.
Biopharmaceuticals are significantly more expensive than traditional medications, with the annual cost of therapy of some biopharmaceuticals touching more than a hundred thousand dollars a year. The cost of these drugs, however, is expected to be closely scrutinized by payers in the coming years.
Recombinant Proteins represented the biggest biopharmaceutical class in 2009, accounting for more than 65% of the total global biopharmaceutical sales. Growth in this class is expected to be low in most of the developed markets as a result of biosimilar entry and increasing cost containment measures.
Monoclonal Antibodies are expected to be the biggest drivers of the biopharmaceutical market in the next five years. Driven by a rich late stage pipeline and a strong uptake from both developed and emerging market, Monoclonal Antibodies are expected to be worth more than US$ 79 Billion by 2015.
Imarc expects the top eight markets (US, Germany, Japan, France, Italy, Spain, UK and Canada) to account for around 79% of the total global biopharmaceutical sales by 2015. This represents a decline of 4% over their 2009 share.
The market share of emerging markets (Brazil, Russia, India, China, Mexico, Turkey and South Korea) is likely to increase from less than 5% in 2009 to more than 8% by 2015.
Global, US, Germany, Japan, France, Italy, Spain, United Kingdom, Canada, Russia, China, Australia, Turkey, Mexico, South Korea, India, Brazil, Argentina and Indonesia.
Classes Covered for Each Region/Country
Recombinant Proteins, Insulin, Erythropoietins, Interferons, Colony Stimulating Factors, Immunoglobulins, Recombinant Blood Factors, Growth Hormones, Recombinant Enzymes, Interleukins, Growth Factors, Monoclonal Antibodies and Purified Proteins.