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US to see rapid advances in therapy innovation

Namdeo Shinde
Wednesday, June 15, 2022, 08:00 Hrs  [IST]

As per pharmaceuticals global market report 2022, the global pharmaceuticals market is expected to grow from $1454.66 billion in 2021 to $1587.05 billion in 2022 at a CAGR of 9.1 per cent. The growth is mainly due to the companies rearranging their operations and recovering from the Covid-19 impact, which had earlier led to restrictive containment measures involving social distancing, remote working, and the closure of commercial activities that resulted in operational challenges.

The market is expected to reach $2135.18 billion in 2026 at a CAGR of 7.7 per cent. The United States accounts for about 45 per cent of the global pharmaceutical market and 22 per cent of global product manufacturing. Major companies in the global pharmaceuticals market include Johnson & Johnson, Novartis AG, Bristol-Myers Squibb, AbbVie, Sanofi S. A, Pfizer Inc., GlaxosmithKline, F. Hoffmann-La Roche Ltd., Merck & Co. and AstraZeneca.

The population profile of most countries is becoming older. According to the World Health Organization (WHO), by 2030, one in every six people on the planet will be 60 or older. The proportion of the population aged 60 and up will rise from one billion in 2020 to 2.2 billion by 2050.

This rise in the aging population increased the patient pool of many chronic diseases such as rheumatoid arthritis, hypertension, diabetes and cancer. The increase in the patient pool drove the demand for pharmaceuticals used in the treatment of these diseases, significantly impacting market growth during this period.

The biologics market growth will be hinder by severe shortage of skilled workforce for developing biologics drugs which require specialized skillsets. These skillsets are limited to some research organizations and medical equipment companies in the United States and Europe.

According to a study conducted by the consulting firm Mercer, the United States will face significant healthcare worker shortages in the coming decade. The firm predicts a shortage of more than 400,000 home health aides and 29,400 nurse practitioners by 2025. This shortage will rise in competition and salaries for the limited talent pool available for biologics manufacturing, thereby limiting growth of the market during the forecast period.

The largest driver of medicine spending through the next five years is expected to be global Covid-19 vaccinations, which are unprecedented both because of the number of people being inoculated and the speed with which it is expected to be achieved and then repeated with frequent booster shots. But even leaving aside the pandemic, global spending on medicines continues to be driven by innovation and offset by losses of exclusivity and the lower costs of generics and biosimilars.

The global medicine market - using invoice price levels - is expected to grow at 3-6 per cent CAGR through 2026. Medicine use and spending trends have been negatively impacted by the pandemic but will be more than offset by incremental spending on related vaccines and therapeutics.

The global medicine spending will be lifted by stronger pharmerging market growth through 2026 and offset by slower growth in developed markets caused by losses of exclusivity for original brands.

A total of 300 new drugs are expected to be launched over the next five years to 2026, significantly higher than the level seen on average during the past decade, and are expected to skew toward specialty, niche and orphan drugs.

New product launches in the next five years will result in $196 billion in new spending, largely offset by reductions in brand spending, with $188 billion due to losses of exclusivity.

The two leading global therapy areas; oncology and immunology are forecast to grow 9-12 per cent and 6-9 per cent CAGR, respectively, through 2026, lifted by significant increases in new treatments and medicine use and offset by the impact of biosimilars. In neurology, many new medicines are expected across a range of diseases, including novel migraine therapies, rare neurological diseases, and the potential for therapies for Alzheimer’s and Parkinson’s disease.

The United States Pharmaceutical Market 2022 and beyond predicts rapid advances in therapy innovation and process technologies and a resultant post-pandemic surge across the United States pharmaceutical industry. The findings reportedly present a bullish case for growth in the United States. High-value manufacturing is identified as a primary expansion area for companies with cell and gene therapy, biologics and viral vector capacity in demand across both the short and medium term.

Revenue in the OTC pharmaceuticals market in United States amounts to US$29.72 bn in 2022. The market is expected to grow annually by CAGR 4.99 per cent (2022-2025). The market's largest segment is the segment cold & cough remedies with a market volume of US$13.87 bn in 2022. In global comparison, most revenue is generated in the United States (US$29,720.00 million in 2022).

In relation to total population figures, per person revenues of US$88.77 are generated in 2022. In the OTC pharmaceuticals market, 26.4 per cent of total revenue will be generated through online sales by 2022 (Statista report). Market disruption created by Covid-19 has primed every aspect of the pharmaceutical industry for change. Acceleration, transformation, and agility have gone from unattainable concepts to daily calls to action. But now you’re at risk of losing our hard-fought momentum.

(The author is assistant professor at Mandesh Institute of Pharmaceutical Education and Research, Mhaswad, Maharashtra)

 

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