Introduction
Otezla, known generically as apremilast, is a musculoskeletal system agent used primarily for the treatment of psoriasis and psoriatic arthritis. Here, we will delve into the current market performance, future projections, and the factors influencing the pricing and sales of Otezla.
Current Market Performance
As of 2023, the global sales of Otezla stood at USD 2,188 million. However, the drug has experienced a historical decline with a Compound Annual Growth Rate (CAGR) of 0.11% between 2020 and 2023[1].
Sales Trends and Projections
Despite the recent decline, Otezla saw a mid-double-digit year-on-year growth in 2021, indicating some resilience in the market. However, future projections suggest continued challenges. Analysts predict that Otezla's sales could be significantly lower than consensus estimates. For instance, Mizuho analyst Salim Syed projected Otezla's 2025 sales at $2 billion, which is below the Wall Street consensus of about $3 billion[2].
Competitive Landscape
The main pressure on Otezla comes from emerging competitors, particularly Bristol Myers Squibb’s TYK2 inhibitor deucravacitinib. This drug was retained by Bristol Myers Squibb as part of the antitrust clearance for its $74 billion acquisition of Celgene, the original owner of Otezla. Deucravacitinib is expected to compete directly with Otezla in the market for oral treatments of inflammatory diseases[2].
Mechanism of Action and Market Segments
Otezla is a PDE4 inhibitor, which makes it unique in the treatment of psoriasis and psoriatic arthritis. The psoriasis drugs market, where Otezla is a key player, is expected to grow significantly. The global psoriasis drugs market is projected to reach USD 59.77 billion by 2034, with a CAGR of 10.9% from 2024 to 2034. Biologics, including tumor necrosis factor inhibitors, dominate this market, but oral treatments like Otezla also hold a significant share[4].
Regional Performance
Otezla is sold globally, including in the US, UK, France, Germany, and Japan. The North American market, particularly the US, is a major contributor to Otezla's sales. The North America psoriasis drugs market dominated the global market with a share of 38.4% in 2024[4].
Pricing and Cost Factors
Employers and healthcare providers are bracing for increased prescription drug costs, with an expected average increase of 8% in 2025. While this trend is driven more by GLP-1 drugs, the overall increase in drug prices affects all segments, including psoriasis treatments. The high cost of treatment and potential side effects are expected to hamper the growth of the psoriasis drugs market, including Otezla[5].
Patent Protection and Generic Competition
Otezla has secured patent protection until 2028, protecting it from generic competition by companies like Sandoz and Zydus. This protection is crucial for maintaining its market share and pricing power in the face of increasing competition from other branded drugs[2].
Market Challenges
- Competition from New Therapies: The launch of new therapies, such as deucravacitinib and inclisiran (a PCSK9 inhibitor), poses significant competition to Otezla.
- Price Erosion: Net price erosions due to increased competition and market dynamics could affect Otezla's revenue.
- Regulatory Environment: Antitrust regulations, as seen in the Celgene acquisition, can impact the ownership and marketing strategies of drugs like Otezla[2].
Key Takeaways
- Sales Projections: Otezla's sales are expected to be lower than consensus estimates, with projected 2025 sales at $2 billion.
- Competitive Pressure: Emerging competitors, particularly deucravacitinib, pose a significant threat to Otezla's market share.
- Market Growth: The psoriasis drugs market is expected to grow at a CAGR of 10.9% from 2024 to 2034.
- Pricing Trends: Overall prescription drug costs are expected to increase, affecting the pricing strategy for Otezla.
- Patent Protection: Otezla is protected from generic competition until 2028.
FAQs
Q: What is the current global sales figure for Otezla?
A: As of 2023, the global sales of Otezla stood at USD 2,188 million[1].
Q: What are the projected sales for Otezla in 2025?
A: Analysts project Otezla's 2025 sales to be around $2 billion, which is lower than the consensus estimate of $3 billion[2].
Q: What are the main competitive threats to Otezla?
A: The main competitive threats include Bristol Myers Squibb’s TYK2 inhibitor deucravacitinib and other emerging therapies in the psoriasis and psoriatic arthritis treatment market[2].
Q: How long is Otezla protected from generic competition?
A: Otezla is protected from generic competition until 2028 due to patent protection[2].
Q: What is the expected growth rate of the psoriasis drugs market?
A: The psoriasis drugs market is expected to grow at a CAGR of 10.9% from 2024 to 2034[4].
Sources
- GlobalData: The Global Drug sales of Otezla (2020 - 2026, USD Millions)
- FiercePharma: Amgen's Otezla, Repatha and biosimilars put on notice, with challenging years ahead
- Mordor Intelligence: Psoriasis Drugs Market Size & Share Analysis
- BioSpace: Psoriasis Drugs Market to Reach USD 59.77 Billion to 2034
- Managed Healthcare Executive: Employers Predict Drug Prices Will Increase in 2025, Survey Shows
