Overview of Brovana
Brovana, also known as arformoterol tartrate, is a long-acting beta2-adrenergic agonist used for the treatment of bronchoconstriction in patients with chronic obstructive pulmonary disease (COPD), including chronic bronchitis and emphysema. It is administered via an inhalation solution[1].
Market Segmentation
The market for Brovana can be segmented in several ways:
By Product Type
- Branded: Brovana is the branded version of arformoterol tartrate.
- Generic: A generic version of arformoterol is available, which significantly impacts the market dynamics due to its lower pricing. For example, the generic version can cost as low as $205.85 for 60 milliliters, compared to the branded version which costs around $632 for the same quantity[2][3].
By Application
- Hospital: Brovana is used in hospital settings for managing COPD.
- Drug Store: It is also available for outpatient use through drug stores and pharmacies[3].
By Region
The market is segmented geographically into regions such as the Americas, APAC, Europe, and the Middle East & Africa. Each region has its own market size, growth rate, and competitive landscape[3][4].
Market Size and Growth Rate
The global arformoterol market, which includes Brovana, is expected to grow at a significant compound annual growth rate (CAGR) from 2024 to 2031. The market size was valued at a certain million in 2023, and this growth is driven by increasing healthcare spending, advancements in digital health technology, and the rising prevalence of COPD[4].
Pricing Analysis
Current Pricing
The cost for Brovana (15 mcg/2 mL) inhalation solution is around $632 for a supply of 60 milliliters. This price can vary depending on the pharmacy and does not include insurance plans. The generic version of arformoterol is significantly cheaper, priced at around $205.85 for the same quantity[2].
International Price Comparisons
U.S. prices for pharmaceuticals, including Brovana, are generally higher compared to other developed countries. Studies have shown that U.S. prices are 1.8 times higher than in other countries for top drugs, including those under Medicare Part B. However, Brovana was excluded from some of these analyses because it is not a physician-administered product[5].
Revenue and Profit Forecasts
Net Present Value (NPV) Model
GlobalData's NPV model provides a comprehensive forecasting and valuation tool for pharmaceutical assets like Brovana. This model includes a forecasted revenue model, operating profit model, net profit calculation, and discounted cash flow analysis to derive the NPV. It takes into account factors such as patent law, regulatory approvals, cash flows, patient numbers, drug margins, company expenses, and pricing estimates[1].
Sales Forecasts
The NPV model calculates sales forecasts using Analyst Consensus estimates and company-specific broker reports. These forecasts are not indication-specific but rather based on overall drug sales and development stages. For Brovana, the model provides 17-year drug forecasts, which are crucial for strategic decision-making in the pharmaceutical industry[1].
Key Factors Affecting the Market
Regulatory Environment
Regulatory approvals and patent laws significantly impact the market for Brovana. Changes in regulatory processes or patent expirations can affect the drug's profitability and market share[1].
Competition
The availability of generic versions of arformoterol increases competition, potentially reducing the market share of the branded version, Brovana. Key manufacturers such as Sunovion Pharmaceuticals and Cipla play a significant role in this competitive landscape[3].
Technological Advancements
Advancements in digital health technology and AI/ML are expected to grow the impact of these technologies on the healthcare sector, including the management of COPD. This could influence the adoption and pricing of Brovana[3].
Regional Market Analysis
Americas
The U.S. is a significant market for Brovana, with high healthcare spending and a large patient base for COPD. However, the high prices of pharmaceuticals in the U.S. compared to other countries can affect market dynamics[3][5].
APAC
Countries like China, Japan, and India are growing markets due to increasing healthcare expenditure and a large population. The APAC region is expected to contribute significantly to the global arformoterol market growth[3][4].
Europe
Europe also represents a substantial market, with countries like Germany, France, and the UK having well-established healthcare systems and a high demand for COPD treatments[3][4].
Market Trends and Drivers
Increasing Healthcare Spending
Global healthcare spending, such as the $3.8 trillion spent in the U.S. in 2019, drives the demand for pharmaceuticals like Brovana. This trend is expected to continue, fueled by an aging population and rising healthcare needs[3].
Rising Prevalence of COPD
The increasing prevalence of COPD globally is a key driver for the arformoterol market. As the population ages and environmental factors contribute to respiratory diseases, the demand for effective treatments like Brovana is likely to increase[4].
Technological Innovations
Advancements in digital health and AI/ML technologies are expected to enhance the management and treatment of COPD, potentially increasing the adoption of Brovana and other arformoterol products[3].
Challenges and Restraints
High Pricing
The high cost of Brovana in the U.S. compared to other countries can be a significant restraint. This pricing disparity may lead to reduced sales or increased competition from generic versions[5].
Regulatory Hurdles
Changes in regulatory environments or patent expirations can pose challenges to the profitability and market share of Brovana[1].
Generic Competition
The availability of generic arformoterol significantly reduces the pricing power of the branded version, Brovana, and can lead to a loss in market share[2][3].
Key Takeaways
- Market Segmentation: The market for Brovana is segmented by product type (branded vs. generic), application (hospital vs. drug store), and region.
- Pricing: Brovana is priced around $632 for 60 milliliters, while the generic version is significantly cheaper at around $205.85.
- Revenue and Profit Forecasts: GlobalData's NPV model provides comprehensive forecasts and valuations, taking into account various market and financial factors.
- Key Factors: Regulatory environment, competition from generics, and technological advancements are key factors affecting the market.
- Regional Analysis: The Americas, APAC, and Europe are significant regions, each with their own market dynamics and growth potential.
- Market Trends: Increasing healthcare spending, rising prevalence of COPD, and technological innovations drive the market.
FAQs
What is Brovana used for?
Brovana (arformoterol tartrate) is used for the treatment of bronchoconstriction in patients with chronic obstructive pulmonary disease (COPD), including chronic bronchitis and emphysema[1].
How much does Brovana cost?
The cost for Brovana (15 mcg/2 mL) inhalation solution is around $632 for a supply of 60 milliliters, depending on the pharmacy. A generic version is available at a lower price, around $205.85 for the same quantity[2].
What is the impact of generic versions on Brovana's market share?
The availability of generic arformoterol significantly reduces the pricing power of Brovana, leading to potential loss in market share due to the lower cost of the generic version[2][3].
How does the regulatory environment affect Brovana's market?
Changes in regulatory approvals and patent laws can significantly impact the profitability and market share of Brovana. These factors are crucial in the NPV model used for forecasting and valuation[1].
What are the key drivers of the arformoterol market?
The key drivers include increasing healthcare spending, the rising prevalence of COPD, and technological innovations in digital health and AI/ML[3][4].
Which regions are expected to dominate the global arformoterol market?
The Americas, APAC, and Europe are expected to dominate the global arformoterol market, each with their own growth potential and market dynamics[3][4].
Sources
- GlobalData: Net Present Value Model: Brovana - GlobalData
- Drugs.com: Brovana Prices, Coupons, Copay Cards & Patient Assistance
- Taiwan News: Arformoterol Market Size Share Revenue And Structure Forecast To ...
- Cognitive Market Research: Global Arformoterol Market Report 2024 Edition, Market Size, Share ...
- ASPE: Comparison of U.S. and International Prices for Top Medicare Part B Drugs by Total Expenditures
