Market Dynamics and Financial Trajectory for Psoriasis Drugs: A Comprehensive Overview
Introduction
The global psoriasis drug market is experiencing significant growth, driven by several key factors. This article delves into the market dynamics, financial trajectory, and the various elements influencing the psoriasis drug market.
Market Size and Growth
The global psoriasis drug market was valued at USD 27.06 billion in 2023 and is projected to grow at a Compound Annual Growth Rate (CAGR) of 9.2% during the forecast period from 2024 to 2032, reaching USD 59.85 billion by 2032[1].
Key Drivers of Market Growth
Several factors are driving the growth of the psoriasis drug market:
Rising Prevalence of Psoriasis
The increasing prevalence of psoriasis among people of all ages is a major driver. Approximately 7.3 million people in the U.S. suffer from psoriasis, which is about 2% of the total U.S. population[1].
Lifestyle Factors
Rising rates of smoking, altered lifestyles, higher alcohol use, and increasing desire for better healthcare are also contributing to the market expansion[1].
Research and Development
Increased numbers of clinical trials for new drug development and strong R&D funding are significant drivers. The development of novel oral consumption medicines, especially for patients hesitant about parenteral dosage forms, is gaining traction. For example, Bristol Myers Squibb introduced Deucravacitinib, which has shown safety and efficacy in treating psoriatic arthritis[1].
Technological Advancements
Continuous technological developments and increasing R&D investments by major players and governments are accelerating market growth. The approval of new biologics, such as AbbVie Inc.'s RINVOQ for treating active psoriatic arthritis, is a notable example[1].
Market Segmentation
The psoriasis drug market is segmented based on therapeutic class, type, treatment type, and region.
By Therapeutic Class
The biologics segment is anticipated to dominate the market due to rising patient acceptance of injectable medicines and the increasing number of new launches and approvals of biologics[1].
By Region
North America is leading the global market, driven by the high prevalence of psoriasis in the U.S. and significant R&D investments in the region[1].
Impact of COVID-19
The COVID-19 pandemic initially hindered the market expansion due to regulatory recommendations to avoid immunosuppressant drugs. However, subsequent guidelines developed by researchers from the Perelman School of Medicine and other institutions found no evidence to discontinue or change conventional treatments for psoriasis and psoriatic arthritis, which is expected to stimulate market growth[1].
Financial Dynamics
Revenue and Spending
The significant increase in utilization of specialty dermatological drugs, including those for psoriasis, has led to a 168% increase in spend per member per month (PMPM) for these drugs since 2017. This trend is expected to continue, driven by new therapies and the rising incidence of skin conditions[4].
Pricing and Innovation
The economics of drug development are influenced by the shift towards precision medicines and the development of drugs targeting small patient populations. This can lead to higher prices for these drugs due to the high fixed costs of research and development and the limited potential for generic competition[3].
Pharmaceutical Company Strategies
Companies like Teligent, Inc. are focusing on developing and marketing generic and branded generic pharmaceutical products, including topical and injectable forms. They are also exploring opportunities to expand their product portfolios through licensing, acquisitions, and the development of private label and contract manufacturing services[2].
Challenges and Limitations
Adverse Effects and Reliable Therapy
The need for reliable therapies and the adverse effects of medical interventions could hamper market growth. Patients' hesitance towards certain dosage forms, such as injectables, is another challenge that needs to be addressed through innovative drug development[1].
Financial and Operational Challenges
Pharmaceutical companies face financial and operational challenges, including liquidity issues, delays in product approvals, and the impact of inflation on operational costs. These challenges can affect their ability to invest in R&D and maintain profitability[2][5].
Regional Market Dynamics
North America
North America is the leading region in the global psoriasis drug market, driven by the high prevalence of psoriasis and significant R&D investments. The U.S. market is particularly strong, with approximately 7.3 million people suffering from psoriasis[1].
Other Regions
Other regions, including Europe, Asia Pacific, Latin America, and the Middle East & Africa, are also experiencing growth, driven by increasing demand for better healthcare and rising psoriasis research and pipeline drug development[1].
Key Players and Market Strategies
Major Players
Companies such as Amgen Inc., AbbVie Inc., Johnson & Johnson Inc., Novartis AG, and Pfizer Inc. are key players in the market. These companies engage in various strategies, including product releases and R&D investments, to broaden their product portfolios and gain a competitive advantage[1].
Product Launches and Approvals
Recent approvals, such as Amgen's Otezla (apremilast) and AbbVie's RINVOQ, highlight the ongoing innovation in the market. These new launches drive market growth and patient acceptance of advanced treatments[1].
Future Outlook
Increasing Utilization of Specialty Drugs
The utilization of specialty dermatological drugs is expected to continue growing, driven by new therapies and the increasing incidence of skin conditions. This trend will likely lead to higher spending on these drugs[4].
Impact of Inflation and Supply Chain Disruptions
Inflation and supply chain disruptions are expected to affect the operational costs of pharmaceutical companies, leading to potential price increases for drugs to protect margins[5].
Role of Biosimilars
As more patents expire, the use of biosimilars is projected to increase, potentially leading to significant financial impacts in the coming years. This could alter the competitive landscape and pricing strategies in the market[5].
Key Takeaways
- The global psoriasis drug market is expected to grow significantly, driven by rising prevalence, lifestyle factors, and R&D investments.
- The biologics segment is anticipated to dominate the market due to increasing patient acceptance and new launches.
- North America leads the global market, with significant growth driven by the U.S. market.
- Challenges include adverse effects, financial and operational issues, and the impact of inflation.
- Key players are focusing on innovative drug development and expanding their product portfolios.
FAQs
Q: What is the projected growth rate of the global psoriasis drug market?
The global psoriasis drug market is expected to grow at a CAGR of 9.2% during the forecast period from 2024 to 2032[1].
Q: Which segment is anticipated to dominate the psoriasis drug market?
The biologics segment is anticipated to dominate the market due to rising patient acceptance of injectable medicines and the increasing number of new launches and approvals of biologics[1].
Q: How has the COVID-19 pandemic affected the psoriasis drug market?
The COVID-19 pandemic initially hindered market expansion due to regulatory recommendations, but subsequent guidelines found no evidence to discontinue or change conventional treatments, which is expected to stimulate market growth[1].
Q: What are the key drivers of the increasing utilization of specialty dermatological drugs?
The increasing utilization is driven by new therapies and the rising incidence of skin conditions such as psoriasis and atopic dermatitis[4].
Q: How do inflation and supply chain disruptions impact pharmaceutical companies?
Inflation and supply chain disruptions affect operational costs, leading to potential price increases for drugs to protect margins[5].
Sources
- Polaris Market Research - Global Psoriasis Drug Market Size & Outlook - 2032
- Annual Reports - Teligent, Inc. - Annual Reports
- National Bureau of Economic Research - The Economics of Drug Development: Pricing and Innovation in a Changing Market
- Caremark - Specialty dermatologicals spend grows 168 percent in 5 years
- NFP - 2024 US Benefits Trend Report-Medical and RX
