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A new report from GlobalData states that biosimilars will overtake the market share after 2019.
Research and consulting firm GlobalData has released a report stating that the increase of biosimilars will have a negative impact on the biologics market after 2019. The report cites patent expirations of branded biologics and regulatory clarification as reasons for the prediction that biosimilars will capture the market share after 2019.
"There are a number of factors driving the initiative towards the global adoption of biosimilars, from austerity measures and slow economic growth in the US, to an aging population and increasing demand for healthcare in countries such as Japan.
“The savings made from choosing biosimilars over biologics are not as substantial as first anticipated, and the cost of biosimilars is expected to be around 20–30% lower than that of branded biologic therapies. This remains a significant reduction nonetheless, since many biologics command hundreds of thousands of dollars for one year’s treatment,” said Joshua Owide, GlobalData’s Director of Healthcare Industry Dynamics, in a press release.
GlobalData’s report also states that while some biopharmaceutical companies are slow to enter the biosimilars market, CMOs, CROS, and multi-industry conglomerates are quicker to embrace biosimilars.
Owide observed, “The biosimilars industry is already highly lucrative. More than 100 deals involving companies focused on the development of biosimilars have been completed over the past seven years, with a total value in excess of $10.7 billion.
“In addition to private ventures, some national governments are targeting the biosimilars market to sustain their domestic pharmaceutical industries. Most significantly, South Korea announced in 2011 that it aims to create approximately 120,000 new jobs in the sector, in a bid to capture 22% of the global biosimilars market by 2020.”