Biosimilars market to grow by 56.7%% by 2017, finds study

Published: 15-Feb-2012

Revenue will reach approximately US$4bn


Impending patent expiries of blockbuster drugs are expected to result in the introduction of several new biosimilars and boost market development, a new report from Frost & Sullivan predicts.

The Analysis of European Biosimilars Market report finds that the market earned revenue of around US$172m in 2010 and estimates that this will reach nearly $4bn by 2017 at a compound annual growth rate (CAGR) of 56.7% from 2010 to 2017.

The study covers existing biosimilars segments (erythropoietin, granulocyte colony stimulating factors and human growth hormones) and the emerging segment that includes monoclonal antibodies, insulin and alpha and beta interferon.

‘The expiration of patents and other intellectual property rights of biological innovators over the next decade opens up opportunities for biosimilars to enter the market and increase industry competition,’ said Frost & Sullivan research analyst Srinivas Sashidhar.

Sashidhar cautioned that while the biosimilars market offers lucrative prospects for growth, the need for sizeable investments would pose a serious challenge to smaller firms because complex production processes, expensive biological and chemical materials, and rigorous clinical trials as well as mandatory safety, efficacy, and quality tests require significant investment.

But specialist pharmaceutical companies with biotech expertise and financial capabilities are well positioned to venture into the biosimilars market, he said.

High manufacturing costs are another major barrier to market entry, but there are viable prospects for licensing agreements between companies.

Those who do take the risk will need to have strongly integrated research and development, production, sales and marketing processes to ensure market success.

‘Access to sales and marketing capabilities can be achieved through collaborations between pharmaceutical companies and specialist biotech firms with technical expertise,’ advised Sashidhar.

‘Companies can build sales and marketing capabilities in-house and ensure effective marketing support for the commercialisation of biosimilars.’

Effective sales communication to the scientific community, coupled with continuous promotional activities as well as close and constant interaction with doctors and pharmacists, will promote greater uptake of biosimilars.

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