The United States Biosimilar market which currently has a market size of ~USD 9.48 Bn. is expected to grow at a CAGR of ~40% in the next five years and become a ~USD 96 Bn. industry as per the findings of Ken Research.
STORY OUTLINE
- Biosimilar drugs tend to be cost effective and this reason is a major factor which contributes highly to the growth of US Biosimilar market.
- Rising geriatric population results in an increased demand for Biosimilar drugs which ultimately helps in the growth of US Biosimilar market.
- Increasing cases of chronic diseases in the country also raises the demand for Biosimilar drugs thereby accelerating the US Biosimilar market.
- Growing partnerships between companies to develop Biosimilar drugs also helps in the growth and expansion of the US Biosimilar market.
A fast growing industry, cost effective nature of Biosimilar, rising cases of chronic diseases, and increase in geriatric population, along with rising strategic partnerships are the various reasons responsible for the growth of US Biosimilar market. This market is anticipated to grow at a CAGR of ~40% in the next five years.
Click to read more about US Biosimilar Market
1.Cost effective nature of Biosimilar drugs: major factor responsible for the growth of US biosimilar market
One of the major reasons behind the significant growth of US Biosimilar market is the cost-effective nature of Biosimilar drugs.
Typically, Biosimilar drugs cost lesser than the generics products due to which they have gained popularity in the healthcare sector. Generally, these drugs cost 30% lesser than the generic or original drugs.
Lucentis is an original drug which is primarily used to treat macular degeneration. This drug is priced at around USD 1200 in the United States.
Its most common biosimilar is Cimerli which is priced way lesser than Lucentis. It costs around USD 800 in the United States.
Humira is another generic biological which is generally used in the treatment of various autoimmune diseases. This drug is priced at approximately USD 3000. Amjevita is its popular Biosimilar drug which is priced at about USD 1500 in the US which is approximately 50% cheaper than the original drug.
Rituxan is a generic drug which is typically used to treat blood cancer. It is priced at about USD 1000 in the US. Its popular biosimilar drug is Truxima which is priced at about USD 900 in the US.
Herceptin is another expensive generic drug which is mainly used in the treatment of various cancers primarily stomach and breast cancers. The average cost of this generic drug in the US is USD 6800. Ogiviri is its biosimilar drug which is sold at approximately USD 3900 in the US.
Thus, it is evident that biosimilar drugs tend to be more cost effective than the original or generic drugs. Their cost effective nature is a major contributor of the growth of US Biosimilar market.
2.Rising geriatric population: generating the demand for Biosimilar drugs
Click here:- To Download a Sample Report
The geriatric population also has been increasing at a significant rate in the United States. The main reasons behind geriatric population are increase in life expectancy rates and decrease in fertility rates.
There were almost 25 aged people per 100 people in the US in 1980s. The number rose to 32 aged people per 100 people in 1990s. In 2000s, there were 35 aged people per 100 people. 2010 witnessed 40 aged people per 100 people.
In 2020s, the number reached to 54 aged people per 100 people. This number is further expected to reach 72 aged people per 100 people in 2030s.
As the population rises, aged population becomes vulnerable to many health conditions and they end up requiring many medicines for the treatment of their health conditions.
In the US, approximately 80% of aged people (above 65) have at least one chronic health condition.
The rise in aged population also results in an increased demand for Biosimilar drugs as most of the aged population do not have any strong source of income and thus, they cannot afford generic drugs or original drugs which tend to be really expensive.
Thus, the geriatric population also contribute to the growth of the US Biosimilar market.
3.Increasing cases of chronic diseases: accelerating the US Biosimilar market
The prevalence of chronic health conditions is very high in the United States. A chronic disease is a health condition that prevails for a longer period. Some of the major chronic diseases in the US are cardiovascular diseases, cancer, diabetes, kidney diseases, Alzheimer’s, etc.
In the 2010, there were almost 140 million people living with chronic diseases. In 2015, USA witnessed approximately 150 million people with chronic diseases. This number rose to 155 million people in 2020. Further, this number is anticipated to become 165 million and 170 million people in 2025 and 2030 respectively.
As the prevalence of chronic health conditions rises, their dependence of medicines and drugs also rises. However, not everyone is able to afford original or generic drugs because they tend to be expensive. Thus, that is where the need to develop biosimilar rises.
Moreover, any country would not like to see its people suffer because they cannot afford original drugs. Thus, the countries put emphasis on developing cost effective drugs in the form of Biosimilar drugs.
4.Increasing partnerships between pharmaceutical companies to develop Biosimilar drugs:
Click here:- To Request for Custom Report
Biocon Biologics, a US firm, was involved in the acquisition of Viatris which is a global organization and is concerned with making Biosimilar drugs in the fields of endocrinology, and oncology along with immunology. The main aim of this acquisition was to make their portfolio as well as future Biosimilar drugs pipeline strong.
AbbVie collaborated with Samsung as well as Amgen to develop Biosimilar drugs for Humira which is a generic drug. For this purpose, AbbVie has started to give the license to Samsung as well as Amgen in various countries to produce the Biosimilar.
Teva Pharmaceuticals, which is a pharmaceutical company concerned with development of generic drugs formed a strategic partnership with Alvotech, which is Biosimilar pharmaceutical company to strengthen their business for developing Biosimilar drugs.
Sandoz and Just – Evotech Biologics decided to collaborate through a partnership to develop various Biosimilar drugs. This partnership also as resulted into former’s pipeline’s expansion to more than 20 biosimilar drugs.
Merck Bioventures and Hanwha made a partnership which involved approximately USD 7 Tn. to make a Biosimilar version of Enbrel which is a generic drug primarily used to treat Rheumatoid Arthritis and is currently developed by Pfizer and Amgen.
CONCLUSION
The United States Biosimilar Market can be best described as a market that is associated with the development of Biosimilar drugs which are an exact copy of original or generic drugs. There are various factors responsible for the growth of US Biosimilar Market.
Some of the major factors contributing to the growth of this market includes the cost-effective nature of Biosimilar drugs, rising geriatric population, rising cases of chronic diseases and increasing partnerships between companies to develop Biosimilar drugs.
