Strong product pipeline and increasing investments for the development of biosimilars expected to elevate biosimilars market growth

Biosimilars Market by Product (Recombinant Glycosylated Proteins, Recombinant Peptides and Recombinant Non-Glycosylated Proteins), Disease Indication (Infectious Diseases, Oncology, Autoimmune Diseases, Growth Hormone Deficiency and Blood Disorders) Manufacturing Type (In-House Manufacturing and Contract Manufacturing) – Global Outlook & Forecast 2021-2031

According to the deep-dive market assessment study conducted by Growth+ Reports, the global biosimilars market was pegged at ~US$ 11.4 billion in 2020. The market is expected to witness a CAGR of ~24.2% from 2021 to 2031. 

New product launches, a strong product pipeline, increasing investments for the development of biosimilars, and increasing partnerships among companies for the development of biosimilars are some of the pivotal factors fueling the biosimilars market.  However, higher costs for the development of biosimilars and stringent regulatory policies for approval of biosimilars are likely to restrain the market to a certain extent.

Biosimilars have the ability to precisely target signaling pathways and cells and in turn help in revolutionizing the battle against various disease areas, such as cancer, blood-related disorders, autoimmune diseases, among others. For instance, Truxima, a biosimilar to rituximab is used for treating non-Hodgkin’s lymphoma. Similarly, in Sept 2017, the FDA approved bevacizumab-awwb (Mvasi), the first biosimilar that can be used to treat colorectal, lung, brain, kidney, and cervical cancers.

The cost-saving potential of biosimilars is a major factor propelling the growth of the biosimilars market. According to RAND Corporation, biosimilars are expected to reduce direct spending on biologic drugs by US$54 billion from 2017 to 2026, or about 3% of total estimated biologic spending over the same period, with a range of US$24 to US$150 billion. Although the cost savings potential of these drugs might vary across biological classes. Increasing use and growing demand for biologics coupled with the increasing need for savings and efficiencies within the health care systems are factors expected to fuel the market growth during the forecast period.

Increasing R&D activities in pharmaceutical companies has resulted in robust product pipeline. Newer product launches by players in the market as well as increasing investments for the development of biosimilars have also played a pivotal role in propelling the biosimilars market. For instance, in Aug 2020, Samsung Biologics, a major shareholder in biosimilar manufacturer Samsung Bioepis announced their intent to invest around US$2 billion in its new manufacturing plant and bio complex. Samsung also claimed that the new plant will be the world’s largest manufacturing facility.

Varying regulatory frameworks in different regions as well as higher costs required during the development process of biosimilars are some of the factors hindering the market growth. Development of biosimilars takes longer time as compared to development of other biological drugs. This is another factor that is likely to curb the market growth to a certain extent.

Regionally, Europe held the largest market share in 2019. The growth of biosimilars market in this region can be attributed to factors such as increasing prevalence of infectious diseases and rising demand for biosimilars owing to its cost-effectiveness. Robust product pipeline and increasing product launches by players in the region are some of the other factors that are likely to boost the biosimilars market.

Some of the prominent players operating in the global biosimilars market are Pfizer Inc., Sandoz International GmbH, Amgen Inc., Samsung Biologics., Biocon, Teva Pharmaceutical Industries Ltd., Eli Lilly and Company, Celltrion Healthcare Co.,Ltd., Mylan N.V., STADA Arzneimittel AG, among others.

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