The global biopharmaceuticals market size was worth USD 3,37,248.0 million in 2020 and is estimated to reach USD XX million by 2028, at a CAGR of 7.6% during the forecast period (2021-2028).
Biopharmaceuticals are large and complex molecular drugs that are mainly obtained from proteins and nucleic acids of living organisms such as microorganisms and animal cells also known as transgenic organisms. These drugs are obtained using biotechnology and have high-therapeutic value. Biopharmaceuticals are also known as biologics and biotech drugs and are usually administered by intravenous, subcutaneous, or intramuscular injections and are more efficient than the conventional small molecule drugs. Biopharmaceuticals are an alternative to the previously less effective and sometimes unsafe treatments and offer several benefits. Biopharmaceuticals benefits include highly effective and potent action, fewer side effects, can be tailored according to specific medical requirements of patients and they hold the potential to actually cure diseases at the root level. Biopharmaceuticals have reduced the number of deaths due to cancer and HIV/AIDS in the past decade and have changed the treatment of several chronic diseases, such as diabetes and cardiovascular diseases.
Some of the biopharmaceuticals include monoclonal antibodies, erythropoietin, growth hormones, recombinant proteins, recombinant human insulin, purified proteins, interferon, and vaccines. Recombinant human insulin was amongst the first substances to be approved for therapeutic purpose, and currently, there are nearly 300 biopharmaceutical products which have been approved and are available in the market.
Market Dynamics
Drivers
- The surge in prevalence of chronic diseases such as cancer and diabetes
- Increasing focus on product developments in emerging economies
- Biopharmaceutical manufacturing technology innovation
- Rising strategic collaboration among biopharmaceutical
Restraints
- Strict regulatory framework
- Lack of financial resource
- Ethical challenges in biopharmaceutical innovation
The surge in prevalence of chronic diseases such as cancer and diabetes
The high prevalence of cancer including lung, liver, colorectal, stomach, breast, and blood cancer is driving the growth of the market in the forecast period.
For instance, according to the National Cancer Institute (NCI) report, it was estimated that 1,735,350 new cases of cancer will be diagnosed in the US in 2018, and 609,640 people will die from the disease.
In 2012, there were around 14 million new cancer cases and about 8.2 million cancer-related deaths worldwide. Thus, there is a high demand for cost-effective biopharmaceuticals for the treatment of such chronic disorders, which, in turn, is expected to boost the market growth.
According to the Centers for Disease Control and Prevention (CDC), in 2016, around 29.0 million individuals in the U.S. were suffering from diabetes. As stated by the Canadian Diabetes Association, the prevalence of diabetes is growing in Canada and it is projected to reach around 5.0 million by 2025.
Moreover, biopharmaceuticals hold the potential to cure the disease entirely and not just the symptoms, hence increasing its acceptance. According to the United Nations (UN) statistics, about 65% of the drugs approved in the market in 2017 are based on biotechnology. Thus, the high prevalence of chronic disease coupled with Increasing focus on product developments in countries will drive the market.
Geographical Analysis
The South America biopharmaceuticals market was valued at USD 35,867.8 million in 2020 and is estimated to reach USD XX million by 2028, at a CAGR of 7.2% during the forecast period (2021-2028).
South America is a region full of opportunities when it comes to biopharmaceuticals. There is a high expertise and development of biopharmaceuticals in South America, so there is a great interest of local and foreign pharmaceutical companies to penetrate the market in order to investigate, produce, and commercialize locally and on an international level.
The improvement of local regulations will encourage multinational pharmaceutical companies to enter into South America, to manufacture and commercialize biopharmaceuticals to later be launched and exported to global markets, as Brazil, Cuba and Argentina are taking measures to elevate the level of standards to register biopharmaceuticals.
The challenge for biopharmaceutical companies is in balancing profit versus costs of R&D. These drugs must comply with global quality standards, offering similar safety and effectiveness as the innovative medication, but maintaining reduced prices. Therefore, biopharmaceutical companies that produce biopharmaceutical must invest in highly trained professionals, costly technologies, and manufacturing plants
Demand for biopharmaceuticals has been increasing considerably for the last few years due to a surge in the prevalence of chronic diseases such as cancer and diabetes in the region.
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