Market Dynamics and Financial Trajectory for the Biologic Drug: Recothrom
Introduction
Recothrom, a recombinant thrombin, is a biologic drug used primarily for topical hemostasis during surgical procedures. This article delves into the market dynamics and financial trajectory of Recothrom, highlighting its current status, market drivers, and future prospects.
What is Recothrom?
Recothrom is a recombinant form of human thrombin, produced through genetic engineering. It is used to control bleeding during surgeries and is the only approved brand of recombinant thrombin in the U.S.[1].
Market Segmentation
The global recombinant thrombin market, which includes Recothrom, is segmented based on applications, end-users, and geographic regions. The primary applications include therapeutic, surgical, and research & diagnostics. The key end-users are hospitals, diagnostic centers, and academic & research institutes[1].
Geographic Market Share
North America holds the largest market share for recombinant thrombin, driven by the high demand due to an increased number of surgeries in this region. Europe follows closely, holding the second-largest share. The dominance of these regions is attributed to the advanced healthcare infrastructure and higher surgical volumes[1].
Market Drivers
Several factors drive the growth of the recombinant thrombin market, including:
- Increase in Number of Surgeries: The global rise in surgical procedures necessitates more effective hemostatic agents, boosting the demand for Recothrom[1].
- Need for Perioperative Hemostasis: The critical need for controlling bleeding during surgeries makes Recothrom an essential tool in surgical settings.
- Improved Educational & Awareness Programs: Enhanced awareness among healthcare professionals about the benefits of recombinant thrombin contributes to its increased adoption.
- Research & Development: Continuous investments in the research and development of proteins and hemostasis technologies further propel the market[1].
Financial Performance
Historical Sales
Recothrom has been a significant contributor to the financial performance of its manufacturers. For instance, in 2012, net product sales of Recothrom were $67 million[4].
Ownership and Revenue Impact
Originally invented and manufactured by ZymoGenetics, Recothrom was later owned and marketed by Mallinckrodt Pharmaceuticals in the U.S. In 2018, Baxter International Inc. acquired Recothrom as part of its acquisition of two surgical products from Mallinckrodt plc. This acquisition was part of Baxter's strategy to enhance its Advanced Surgery business segment, which saw significant growth in 2018[2].
Parent Company Performance
Baxter International Inc., the current owner of Recothrom, reported strong financial results in 2018. The company's worldwide sales totaled approximately $11.1 billion, with a 5% increase on a reported basis and 4% on a constant currency basis. The Advanced Surgery segment, which includes Recothrom, delivered double-digit growth at constant currency rates, contributing to the overall financial performance of the company[2].
Challenges and Limitations
Despite its market growth, Recothrom faces certain challenges:
- Thromboembolic Adverse Reactions: Some patients may experience thromboembolic adverse reactions, which can limit the drug's use.
- Antibody Formation: The formation of antibodies in some patients is another limitation that could impact the market growth of Recothrom[1].
Future Prospects
The biologics market, including recombinant thrombin, is expected to grow significantly due to several factors:
- Rising Prevalence of Chronic Diseases: The increasing burden of chronic diseases drives the demand for advanced therapeutic options like biologics[3].
- Technological Advancements: Continuous technological advancements in drug delivery systems and biologic therapies are expected to enhance the market for Recothrom.
- Regulatory Approvals: The escalating approvals of biologics by regulatory agencies will further expand the market for Recothrom and similar biologic drugs[3].
Competitive Landscape
The biologics market is highly competitive, with several players vying for market share. However, Recothrom's unique position as the only approved recombinant thrombin in the U.S. gives it a competitive edge. The market dynamics are also influenced by the emergence of biosimilars, which could potentially impact the sales of branded biologics like Recothrom in the future[5].
Key Takeaways
- Recothrom is a critical biologic drug used for topical hemostasis during surgeries.
- The market is driven by an increase in surgical procedures, need for perioperative hemostasis, and investments in research and development.
- North America and Europe are the leading regions due to high demand and advanced healthcare infrastructure.
- Despite growth drivers, Recothrom faces challenges such as thromboembolic adverse reactions and antibody formation.
- The future prospects are positive, driven by technological advancements and rising chronic disease prevalence.
FAQs
What is Recothrom used for?
Recothrom is used for topical hemostasis during surgical procedures to control bleeding.
Who is the current manufacturer of Recothrom?
Recothrom is currently owned and marketed by Baxter International Inc.
What are the primary market drivers for Recothrom?
The primary market drivers include the increase in the number of surgeries, need for perioperative hemostasis, improved educational and awareness programs, and rising investments in research and development.
What are the potential challenges for Recothrom?
Potential challenges include thromboembolic adverse reactions and antibody formation in some patients.
How does the acquisition by Baxter International Inc. impact Recothrom's market?
The acquisition by Baxter International Inc. has enhanced the Advanced Surgery segment, contributing to the company's overall financial performance and providing a stronger market presence for Recothrom.
Sources
- Biospace: Recombinant Thrombin Market: Increase in number of surgeries worldwide to drive the market.
- Baxter International Inc.: Baxter Reports 2018 Fourth-Quarter and Full-Year Results.
- Biospace: Biologics Market Size to Reach USD 699.5 Billion by 2032, Impelled by Emergence of Advanced Drug Delivery Systems.
- Bristol-Myers Squibb: EVOLVING TO A SPECIALTY CARE BIOPHARMA COMPANY.
- Federal Trade Commission: Biologics Market Dynamics: Setting the Stage for Biosimilars.
