Market Dynamics and Financial Trajectory for the Biologic Drug: KANJINTI
Introduction
KANJINTI, a biosimilar of the biologic drug trastuzumab (Herceptin), has been a significant player in the biosimilar market since its introduction. This article delves into the market dynamics and financial trajectory of KANJINTI, highlighting its impact on the healthcare industry and its financial performance.
What is KANJINTI?
KANJINTI (trastuzumab-anns) is a biosimilar developed by Amgen, designed to treat conditions such as breast cancer. It is highly similar to and functionally identical to the reference biologic, Herceptin, but offers a more cost-effective alternative[3].
Market Entry and Impact
KANJINTI was one of the first biosimilars to enter the trastuzumab market. Its entry marked a significant shift in market dynamics, as it immediately began to erode the market share of the originator, Herceptin. Data show that Herceptin started losing market share as soon as KANJINTI entered the market, and this trend continued with the subsequent entry of other biosimilars like Ogivri, Trazimera, Herzuma, and Ontruzant[4].
Market Share and Competition
KANJINTI maintained a strong first-mover advantage, securing a significant market share in most states. By December 2020, KANJINTI held approximately 39.6% of the market share, while the reference product, Herceptin, retained only about 45.3%. However, there was considerable variation in market share by state, with KANJINTI dominating in many regions but facing strong competition from other biosimilars in others[1].
State-by-State Variation
The market share of KANJINTI varied significantly across different states. For instance, it had a 100% market share in Washington, D.C., and Delaware, but in Alaska, Ogivri dominated with about 75% of the market share. This variability highlights the complex competitive landscape in the biosimilar market[1].
Pricing Dynamics
One of the key benefits of biosimilars is their ability to drive down prices. KANJINTI and other biosimilars entered the market with prices lower than the reference product. Over time, the average sales price (ASP) of all products, including the reference biologic, declined. By the second quarter of 2022, the ASPs of biosimilars ranged from 28% to 58% of the ASP of the reference product prior to biosimilar competition[1].
Price Competition
KANJINTI consistently had one of the lowest ASPs during the study period, although Ogivri briefly had a lower ASP in two quarters. This competitive pricing environment ensured that patients had access to more affordable treatment options[1].
Financial Performance
Revenue and Sales
KANJINTI's sales performance has been significant, although it has faced challenges in recent years. In the fourth quarter of 2022, KANJINTI sales decreased by 55% year-over-year, primarily due to lower net selling prices and unfavorable market conditions[5].
Amgen's Financial Reports
Amgen's financial reports reflect the broader trends in the biosimilar market. For instance, in the first quarter of 2024, Amgen's total revenues increased by 22%, driven by volume growth, but the company also reported higher operating expenses and a GAAP loss per share due to various factors, including the impact of the Horizon acquisition[2].
Regulatory Environment
The regulatory framework has been crucial in supporting the growth of the biosimilar market. Supportive policies in regions like Europe have encouraged the development and adoption of biosimilars, contributing to their increasing market presence[3].
Patient Access and Healthcare Costs
Biosimilars like KANJINTI have significantly improved patient access to critical treatments by offering cost-effective alternatives. This is particularly important given the escalating healthcare costs and the increasing incidence of chronic diseases. By providing lower-cost options, biosimilars help alleviate the financial strain on healthcare systems[3].
Prescribing Patterns
Research has shown that prescribing patterns for trastuzumab and its biosimilars vary between hospital-based and office-based physicians. Hospital-based physicians tend to prescribe either the biologic or a biosimilar exclusively, while office-based physicians prescribe more evenly across the different drug options[4].
Future Outlook
The biosimilar market, including KANJINTI, is expected to continue growing robustly. The global biosimilar market is projected to grow at a CAGR of 17.02% from 2024 to 2030, reaching nearly USD 74.70 billion by 2030. This growth is driven by factors such as patent expirations of biologic drugs, escalating healthcare costs, and the need for more accessible treatments[3].
Key Takeaways
- Market Entry and Impact: KANJINTI's entry into the market significantly eroded the market share of the originator, Herceptin.
- Market Share and Competition: KANJINTI maintained a strong first-mover advantage but faced competition from other biosimilars.
- Pricing Dynamics: Biosimilars, including KANJINTI, have driven down prices, making treatments more affordable.
- Financial Performance: KANJINTI's sales have been impacted by lower net selling prices and market conditions.
- Regulatory Environment: Supportive regulatory frameworks have encouraged the growth of the biosimilar market.
- Patient Access and Healthcare Costs: Biosimilars have improved patient access to treatments and helped reduce healthcare costs.
FAQs
What is KANJINTI?
KANJINTI (trastuzumab-anns) is a biosimilar of the biologic drug trastuzumab (Herceptin), used to treat conditions such as breast cancer.
How has KANJINTI impacted the market?
KANJINTI's entry into the market led to a significant reduction in the market share of the originator, Herceptin, and drove down prices, making treatments more affordable.
What is the current market share of KANJINTI?
By December 2020, KANJINTI held approximately 39.6% of the market share, although this varied significantly by state.
How has the pricing of KANJINTI evolved?
KANJINTI and other biosimilars entered the market with lower prices than the reference product, and their ASPs continued to decline over time.
What are the future prospects for the biosimilar market?
The global biosimilar market, including KANJINTI, is expected to grow at a CAGR of 17.02% from 2024 to 2030, driven by factors such as patent expirations and escalating healthcare costs.
How do prescribing patterns vary for KANJINTI and other biosimilars?
Hospital-based physicians tend to prescribe either the biologic or a biosimilar exclusively, while office-based physicians prescribe more evenly across different drug options.
Sources
- Trastuzumab Biosimilars Successfully Drove Down Prices - AJMC
- AMGEN REPORTS FIRST QUARTER 2024 FINANCIAL RESULTS - PR Newswire
- Biosimilar Market: Global Industry Analysis and Forecast (2024-2030) - Maximize Market Research
- Biosimilars Drug Market Isn't Broken After All, USC Schaeffer Study - USC Schaeffer
- AMGEN REPORTS FOURTH QUARTER AND FULL YEAR 2022 FINANCIAL RESULTS - Amgen