Recent progress in biological therapies has widened the scale of therapeutic targets for treatment of cancer with the identification of tumor cell specific genes. Immunotherapies/ biologics are emerging as potential therapies to find the permanent cure for various cancer types. Amongst various biologics, drugs based on monoclonal antibodies (mAbs) have gained significant attention in recent years due to their high efficacy. Global cancer drugs market accounted for $78,238.9 million in 2015, and is forecast to generate revenue of $111,938.4 million by 2020. The cancer drugs market is driven by the growing prevalence of various types of cancer, increasing demand of biological and targeted drug therapies, continuous patent expiry of key cancer drugs and the rising impact of biosimilars. However, the high cost of drug development, the threat of failure and the adverse effects of cancer drug therapy, particularly chemotherapy, hinders the market growth. Developed nations have implemented strict regulations for the design and development of cancer drugs. USFDA and European Union have undertaken significant initiatives to fuel the growth of the cancer drugs market by providing pre-market approval for potential drugs under clinical development. Asia-Pacific and LAMEA are promising regions for conducting clinical trials due a large population base and the low cost of clinical trials as compared to North America and Europe. Nevertheless, advancement of cancer drug research owing to biological/targeted therapies and personalized medicines hold promising opportunities for pharmaceutical, bio-pharmaceutical and biotechnology companies engaged in developing cancer drugs.
Market Segment Review:
The competitive structure of the global cancer drugs market is analyzed using Porter’s Five Forces Model. According to Porter’s analysis, the bargaining power of buyers is low due high cost of drugs, lesser knowledge about the products/drugs. However, the bargaining power of suppliers tends to moderate owing to their lower concentration and requirement of higher capital investment. Cancer drugs are mostly protected with IPR rights thus, leads to increase in the barriers for new entrants.
Global cancer drugs market by therapeutic modalities is segmented into chemotherapy, Targeted therapy, Immunotherapy, Hormonal therapy and others. Immunotherapy dominates the global market for cancer drugs due to its high efficacy and less side effects. Monoclonal antibodies such as trastuzumab, bevacizumab and rituximab are potential immunotherapeutic agents that have achieved magnanimous sales. The cancer immunotherapy market is primarily driven by huge research investments from multinational companies along with research collaborations for the development of cancer immunotherapeutics. Over the past few years, targeted cancer therapies have gained significant attention due to their tumor cell specific action in protecting healthy cells from the toxic effects of cancer drugs.
Global cancer drugs market by cancer type is segmented into Blood cancer, Breast cancer, gastrointestinal tract cancer, Prostate cancer, Lung Cancer, Skin Cancer and other cancer. Amongst these different cancer types, blood cancer was the largest revenue generating segment in 2015. The growth of blood cancer segment is majorly due to the high cost of the drugs used to treat blood cancer. The prevalence of blood cancer is less in developed nations, however, the diagnosis rate is more than 90% and almost every person diagnosed with blood cancer seeks complete treatment for the cure of blood cancer. Due to the high disposable incomes of consumers in developed nations, expensive drug therapy of blood cancer is affordable in these regions. Majority of the recently evolved biologics (drugs based on monoclonal antibodies) showed a significant cure for blood cancer; therefore, usage rate of these drug is high, despite of their high cost.
Geographically, the Global cancer drugs market segments into North America, Europe, Asia-Pacific and LAMEA. North America dominates the market for cancer drugs as the region houses companies engaged in the development of cancer drugs. Additionally, the disposable incomes of consumers and health insurance cover for life-threatening diseases in North America are very high which increases the affordability of cancer treatment. In recent years, US Food and Drug Administration (USFDA) has taken initiatives to support the growth of cancer drugs market by providing pre-market approval to the drugs, which are in the clinical phase; thus, accelerating the clinical development.
A large number of patents in North America indicate substantial investment in R&D from multinational companies as well as research organizations. Europe is the second largest market for cancer drugs and is expected to grow at a CAGR of 6.8% during the analysis period. In North America and Europe, a majority of the multinational players have focused on the development of biologics or immunotherapeutic owing to its high efficacy and target specific action. The research for cancer drugs in Asia-Pacific and LAMEA is emerging with the focus towards the development of biosimilars. The prevalence of various cancer types is high in developing countries which render these regions as promising locations to conduct clinical trials. Moreover, the cost of clinical research is low in these regions due to the availability of a huge population base and favourable government policies.
Japan Oncology/Cancer Drugs Market Review:
Japan has largest share to the total Asia Pacific cancer drug market due to the high prevalence of cancer in Japanese population. Lung cancer is the major cause of death in Japanese population. The total healthcare expenditure of japan was $495 billion in 2013.
Several new drugs are now approved in Japan, including Afinitor, Avastin, Jevtana, Sutent and Zytiga, which could trigger a growth of cancer drug market and a shift in the treatment paradigm in the foreseen future.
Access to new drugs might be delayed in Japan due to strict regulatory processes in Japan. Pharmaceutical and Medical Devices Agency (PMDA) and Ministry of Health, Labor and Welfare (MHLW), are the regulatory agencies in Japan. Jevtana (Cabazitaxel acetonate) and MabCampath (Alemtuzumab), by Sanofi, are recently approved cancer drugs in Japan.
Japanese government health insurance is the most generous in Asia and offers the highest rates of reimbursement. The government offers coverage for approved treatments, including treatments for cancer, to all citizens. The treatments are eligible for coverage as long as they are approved by Japan’s MHLW.
Japan oncology/cancer drugs market by therapeutic modalities, 2020
The key players profiled in this report include Amgen Inc., Johnson & Johnson, GlaxoSmithKline, Eli lilly & Co., Roche diagnostics, Novartis AG, Pfizer, Merck & Co., Sanofi, and Celgene Corporation. Roche, Novartis and Celgene are the top three players in Global cancer drugs market with a wide of cancer product portfolio. The three companies contribute to ~60% of the total market share. The immunotherapeutics developed by Roche namely Rituxan, Avastin and Herceptin achieved blockbuster sales in 2013. A majority of the cancer drug manufacturers have adopted collaboration, approval and acquisition as their key developmental strategies to achieve a competitive edge. Moreover, companies are forming strategic alliances to accelerate their clinical developments. These strategies have proved to be effective in helping key players retain their leading positions in the global market.
ONCOLOGY DRUGS MARKETKEY BENEFITS
- The report provides the quantitative analysis of the current trends, size and estimations for the forecast period 2013-2020 that assists in identifying the prevailing opportunities to capitalize on
- The report helps in understanding the strategies adopted by various companies for consolidating their positions in the industry.
- The report provides comprehensive analysis of factors that drive and restrict the growth of the cancer drugs market
- Demand and supply conditions of cancer drugs across all geographic regions are comprehensively analyzed
- Competitive intelligence (of leading manufacturers) helps in understanding the competitive market scenario and opportunities across the geographies
- SWOT analysis of the key market players is provided to illustrate the business strategies adopted by the companies
ONCOLOGY/CANCER DRUGS MARKET SEGMENTATION
The Oncology drugs market is segmented by the therapeutic modalities, cancer types and geography.
BY THERAPEUTIC MODALITIES
- Targeted Therapy
- Immunotherapy (Biologic Therapy)
- Hormonal Therapy
BY CANCER TYPES
- Blood Cancer
- Breast Cancer
- Gastrointestinal Cancer
- Prostate Cancer
- Respiratory/Lung Cancer
- Skin Cancer
- Other Cancers
- North America
- United States
- United Kingdom
- GCC (Gulf Corporation Council)