Market For Orphan Drugs Expected To Increase To More Than $112 Billion In 2014
June 07, 2010
Wellesley, Mass. – According to a new technical market research report, GLOBAL MARKETS FOR ORPHAN DRUGS (PHM038C) from BCC Research (www.bccresearch.com), the value of the market for orphan drugs was an estimated $85 billion in 2009, but is expected to increase to more than $112 billion in 2014, for a 5-year compound annual growth rate (CAGR) of 5.7%.
The largest segment of the market, made up of biologics, is projected to increase at a CAGR of 6.9% to $76.2 billion in 2014, after being valued at an estimated $54.6 billion in 2009.
The segment made up of nonbiologics was estimated at nearly $30.4 billion in 2009, and is expected to increase at a CAGR of 3.4% to reach nearly $36 billion in 2014.
The orphan drug industry has come a long way since its implementation, leaving many noticeable benchmarks along the way as the U.S. Orphan Drug Act (ODA), which was implemented in 1983, entered its 26th year in 2009. The purpose of this report is to analyze the orphan drug industry and provide market, technology, and revenue forecasts for the period 2009 to 2014. The report also analyzes the influence of the orphan drug industry in the development of the biotechnology industry.
BCC published comprehensive reports on the orphan drug industry in 2004 and in 2007. The emerging trends identified in 2007 have become more established during the past 3 years. Moreover, new trends are emerging as executives of large pharmaceutical companies realize the failing of the blockbuster business model. The role of the biotechnology industry in the pharmaceutical market has become more prominent, which is reflected in the orphan drug sector as well.
Rising prices of orphan drugs and the reluctance of insurance companies to cover orphan drugs that are priced extremely high are two issues being taken seriously by governments and patient support groups. Various business models are being suggested and designed to tackle these issues. This report analyzes these rising business models in detail.
Business strategies that helped big pharmaceutical companies as well as biotechnology companies to enter the market as well as maintain their market shares have been identified. These detailed analyses are targeted to help strategy developers and decision-makers at biotech and pharmaceutical companies. It also gives insights into the incentives that have been attractive for different segments of the industry. This is especially suitable for legislators involved in government policy development programs. Technology trend analysis gives an overview of successful technologies, which are helpful for research managers in charge of project identification and development.
Source: BCC Research
Global Markets for Orphan Drugs( PHM038C )
Publish Date: May 2010
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