Biologics is Estimated to Witness High Growth Owing to Opportunity...

Biologics is Estimated to Witness High Growth Owing to Opportunity to Treat Complex Diseases

Posted 2024-01-05 11:54:00

Biologics such as vaccines, blood components, allergic extracts, recombinant therapeutic proteins, monoclonal antibodies, gene therapies, and living cells intended for transplantation are revolutionizing healthcare industry. Biologics are particularly useful for treating complex conditions like cancer, autoimmune disorders, and chronic diseases owing to their high target selectivity. The growing need for tailored therapies and bio-similar drugs are fueling adoption of biologics globally.

The global biologics market is estimated to be valued at US$ 401.96 Bn in 2023 and is expected to exhibit a CAGR of 8.2% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Opportunity:
The opportunity to treat complex diseases through personalized therapies is driving growth of the biologics market. Biologics have shown promising results against diseases which have proven difficult to treat with conventional drugs. For instance, monoclonal antibodies have significantly improved survival rates in cancer patients. Growing incidence of chronic diseases worldwide is also contributing to the demand. Biologics can be precisely designed to target complex pathways involved in conditions like Alzheimer's, arthritis, and diabetes. Several biotech companies are investing heavily in development of advanced biologics like gene and cell therapies to address unmet needs in areas like neurological disorders. Rising healthcare spending and improving accessibility are further expanding the market reach of biologics globally.

Porter’s Analysis
Threat of new entrants: The high capital requirements and stringent regulations pose a significant barrier for new players to enter the biologics market. The threats from new entrants are low.

Bargaining power of buyers: There are a few large buyers like large hospitals, wholesalers, and distributors in the market. However, the buyers have limited power due to the patent protection and innovative nature of biologics drugs.

Bargaining power of suppliers: The bargaining power of suppliers is high as key materials for biologics production are sourced from a small group of suppliers. Supply chain disruptions can significantly impact the production.

Threat of new substitutes: New substitutes pose a low to medium threat as biologics drugs have fewer substitutes and have some unique benefits over small-molecule drugs.

Competitive rivalry: The competitive rivalry is high given the presence of a significant number of established players and fast growth of the market attracting new entrants. Players compete on innovation, pricing, and portfolio expansion.

SWOT Analysis
Strength: Biologics have high efficiency and fewer side effects than traditional drugs. Innovative biologics keep expanding treatment options for various diseases.

Weakness: High R&D and production costs of biologics make them less affordable. Biosimilars pose pricing and market share challenges for innovator biologics.

Opportunity: Rising incidence of chronic diseases and growing geriatric population increases the demand for biologics. Emerging economies provide major growth opportunities.

Threats: Stringent regulations increase compliance burden. Reliance on few suppliers makes the supply chain vulnerable to disruptions. Patent expiries enhance market competition.

Key Takeaways
The Global Biologics Market Size is expected to witness high growth at a CAGR of 8.2% during the forecast period of 2023 to 2030. The market size for 2024 is projected to reach US$ 401.96 Bn.

Regional analysis: North America dominates the biologics market currently owing to favorable reimbursement policies and high healthcare spending in the US. Asia Pacific is poised to grow at the fastest pace due to rising incomes, healthcare investments, and increasing disease burden in major countries like China and India.

Key players: Key players operating in the biologics market are Advanced Accelerator Applications (AAA), Amgen, AstraZeneca, Bayer, Eli Lilly and Company, F. Hoffmann-La Roche Ltd, Johnson & Johnson, Merck & Co., Novartis, Pfizer. Players are focusing on expanding their biologics portfolios through acquisitions and partnerships.