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Impending Patent Expiries of Blockbuster Biologics Creates Huge Market Opportunity for European Biosimilars Manufacturers, States Frost & Sullivan


News provided by

Frost & Sullivan

07 May, 2012, 11:30 GMT

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- Seamlessly Integrated R&D, Production, Sales and Marketing Processes to Ensure Success in this High Growth Market

LONDON, May 7, 2012 /PRNewswire/ -- The biosimilars manufacturing industry is at a nascent stage. However, the impending patent expiries of biologics are anticipated to result in the introduction of several new biosimilars and provide impetus to market development.

New analysis from Frost & Sullivan (http://www.pharma.frost.com), Analysis of European Biosimilars Market, finds that the market earned revenue of approximately $172.0 million in 2010 and estimates this to reach approximately $3,987.0 million in 2017, at a compound annual growth rate (CAGR) of 56.7% from 2010 to 2017. This study covers the existing biosimilars segments (erythropoietin, granulocyte colony stimulating factors and human growth hormones) and emerging biosimilars segments (monoclonal antibodies, insulin and interferon - alpha and beta).

"The expiration of patents and other intellectual property rights of biological innovators over the next decade opens up opportunities for biosimilars to enter the market and increase industry competition," notes Frost & Sullivan Research Analyst Srinivas Sashidhar. "Price reduction strategies will ensure increased adoption among physicians and patients alike, spurring market advancement."

While the market offers lucrative growth prospects, the need for sizeable investments will pose a serious challenge to smaller firms. Complex production processes, expensive biological and chemical materials, and rigorous clinical trials as well as mandatory safety, efficacy, and quality tests require significant investments.

"The need for considerable financial outlays will hinder the entry of small biotech firms in particular," cautions Sashidhar. "On the other hand, specialty pharmaceutical companies with biotech expertise and financial capabilities are well positioned to venture into the biosimilars market."

High manufacturing costs are another major market entry barrier. However, there are viable prospects for licensing agreements between companies.

The uncertainties and risks for biosimilars manufacturers persist. Companies need to have strongly integrated research and development (R&D), production, sales and marketing processes to ensure market success.

"Access to sales and marketing capabilities can be achieved through collaborations between pharmaceutical companies and specialty biotech firms with technical expertise," advises Sashidhar. "Companies can build sales and marketing capabilities in-house and ensure effective marketing support for the commercialisation of biosimilars."

Effective sales communication to the scientific community, coupled with continuous promotional activities as well as close and constant interaction with doctors and pharmacists, will promote greater uptake of biosimilars.

If you are interested in more information on this study, please send an e-mail with your contact details to Janique Morvan, Corporate Communications, at janique.morvan@frost.com.

Analysis of European Biosimilars Market is part of the Pharmaceutical & Biotechnology Growth Partnership Service programme, which also includes research in the following markets: Generic Pharmaceuticals Market – A Global Analysis, Analysis of the European Thrombosis Therapeutics Market and European Pharmaceutical and Biotech Contract Manufacturing Markets. All research included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

About Frost & Sullivan
Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best-in-class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best-practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages 50 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 40 offices on six continents. To join our Growth Partnership, please visit http://www.frost.com.

Analysis of European Biosimilars Market
M770-52

Contact:
Janique Morvan
Corporate Communications – Europe
P: +33-(0)1-42-81-20-37
M: +33-(0)6-79-22-41-42
E: janique.morvan@frost.com
http://www.frost.com

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