February 25, 2024
Biologics Market

The Global Biologics Market Is Expected To Be Driven By Increasing Demand For Biosimilars

The biologics market has witnessed significant growth in recent years due to the availability of effective and affordable biological drug therapies for various medical conditions such as cancer, autoimmune disorders, and chronic diseases. Biologics include recombinant therapeutic proteins, monoclonal antibodies, and vaccines manufactured in living systems. Due to their complex molecular structure and biological origin, biologics have advantages over chemically synthesized small-molecule drugs, as they can be precisely targeted at specific disease pathways. The biologics market is expected to continue expanding rapidly owing to the introduction of novel biologics for cancer, autoimmune disorders, and rare diseases.

The global Biologics Market is estimated to be valued at US$ 401.96 Bn in 2023 and is expected to exhibit a CAGR of 9.3% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

One major trend gaining traction in the biologics market is the increased approval and uptake of biosimilars. Biosimilars offer highly comparable quality, safety, and efficacy to reference biologics at a much lower cost, increasing patient access to biologic therapies. Several major biologic drugs facing patent expiry are expected to face biosimilar competition in the coming years. For example, the clinical approval of the first Rituximab biosimilar MabThera in 2017 lowered prices significantly compared to the originator brand. Growing biosimilar competition is thus expected to be a prime driver for market growth by facilitating wider adoption. Moreover, biosimilar makers promise further cuts in drug prices with each subsequent biosimilar approval, potentially transforming the standard of care for cancer and chronic diseases worldwide.

Porter’s Analysis

Threat of new entrants: The Global Biologics Market Size requires huge R&D investments and capital expenditures for drug development and manufacturing facilities which acts as a barrier for new entrants.

Bargaining power of buyers: The bargaining power of buyers is moderate as biologics have few therapeutic alternatives and buyers have to rely on a few large pharmaceutical companies.

Bargaining power of suppliers: Major suppliers like raw material and equipment suppliers have negligible bargaining power due to fragmented nature of suppliers in the biologics industry.

Threat of new substitutes: Threat of new substitutes is low as biologics have limited substitutes and they target specific disease conditions.

Competitive rivalry: The biologics market landscape is highly competitive due to presence of major pharmaceutical companies investing heavily in R&D of novel biologics.

Key Takeaways

The global biologics market is expected to witness high growth over the forecast period. The North American region currently dominates the market and is expected to continue its dominance in the future owing to high adoption of biological drugs, favorable reimbursement policies, and presence of major players in the region.

Regional analysis

North America is expected to hold the largest share of the global biologics market during the forecast period. Factors such as increasing focus on personalized medicines, favorable reimbursement policies, and collaborations between pharmaceutical companies and academic research institutes are driving the growth of the biologics market in the region.

Key players

Key players operating in the biologics market are Novartis AG., AstraZeneca PLC., Bayer AG., Sanofi SA., Pfizer Inc., Merck & Co., Johnson and Johnson, GlaxoSmithKline PLC., Amgen Inc., AbbVie Inc., F. Hoffmann-La Roche AG., Eli Lilly and Company., and AGC Biologics. Novartis and Roche are the market leaders in terms of revenue. Companies are focusing on developing biosimilars as well as novel biologics through partnerships and M&A activities.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it