Patent expiry of blockbusters will create market for biosimilars, says F&S
Market expected to reach US$4bn in revenue by 2017
Impending patent expiries of several blockbuster biologics will create a huge market opportunity for European biosimilars, says Frost & Sullivan in its latest report.
The report, Analysis of European Biosimilars Market, finds that the market earned revenue of approximately US$172m in 2010 and forecasts that this will reach approximately $4bn by 2017, at a compound annual growth rate (CAGR) of 56.7% over 7 years.
The study covers the existing biosimilars segments (erythropoietin, granulocyte colony stimulating factors and human growth hormones) and emerging biosimilars segments (monoclonal antibodies, insulin and 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,’ says Frost & Sullivan research analyst Srinivas Sashidhar.
‘Price reduction strategies will ensure increased adoption among physicians and patients alike, spurring market advancement.’
While the market offers lucrative growth prospects, the need for sizeable investments will pose a serious challenge to smaller firms and hinder their entry into the sector, the study finds. 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, adds Sashidhar.
High manufacturing costs are another major market entry barrier. However, there are viable prospects for licensing agreements between companies.
The uncertainties and risks for biosimilars manufacturers also persist. Companies need to have strongly integrated research and development (r&d), 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,’ advises 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.
