Obesity Epidemic Sends Market for FDA-Approved Drugs Soaring

June 01, 2016

Wellesley, Mass., June 01, 2016 – Anti-obesity medications are a growing global market with several new FDA-approved medications since 2012.  BCC Research reveals in its new report that In 2016, sales for FDA-approved obesity medication will be at $455 million. Sales will grow to blockbuster status, reaching $2.9 billion in 2021 and reflecting a CAGR of 44.9%.

Obesity is a large imbalance between calories consumed and expended both from lack of activity and intake of caloric-rich foods that are high in fat.  Worldwide, obesity has more than doubled since 1980. Obesity is preventable with the exception of some rare genetic disorders. The field of obesity therapies complements those in diabetes and cardiac care since comorbidities of individuals with obesity include high blood pressure, Type 2 diabetes, and other vascular problems.

The global market for obesity treatments should reach more than $7.8 billion by 2021 from over $4.3 billion in 2016, increasing at a five-year compound annual growth rate (CAGR) of 12.7% from 2016 to 2021. As a segment, bariatric surgeries should reach $3.4 billion and over $4.3 billion in 2016 and 2021, respectively, reflecting a five-year CAGR of 5%. As a segment, FDA-approved drugs market should reach $2.9 billion by 2021, up from $455 million in 2016, on a five-year CAGR of 44.9%.

Anti-obesity medications are a growing global market with several new FDA-approved medications since 2012. In the U.S., gastric band procedures comprise a smaller share of overall bariatric surgeries that also include sleeve gastrectomy and gastric bypass. Key growth drivers include increasing rates of global obesity, demand for therapies that provide a combination of benefits with a low side effect risk profile, greater private investment and public funds toward obesity prevention and treatment, and more obesity research and understanding of biochemical pathways available for intervention and modification.

A future trend will be more mechanisms of action introduced to the market. For example, the mechanism of action for beloranib (in Phase III) is a biochemical reduction of body fat production and a burning of excess fat as fuel. Most other drugs use other forms of signaling. Also, the use of combination drugs to tackle obesity should develop, whether separate or in one combination pill. For example, lLiraglutide (Saxenda) initially received approval as Victoza for use as a lower dosage for Type 2 diabetes.

Devices, like medications, are also making a comeback, and weight-loss surgeries are becoming more refined in technique. A number of new weight-loss device approvals by the FDA are ushering in a new era for obesity procedures for patients and other stakeholders alike. In 2001 the Lap-Band was approved, followed in 2007 by the Realize Gastric Band. In 2015, gastric balloons ORBERA and Reshape Dual Balloon, as well as the Maestro System all received FDA approval.

Pharmaceutical companies are scrambling to bring new drug lines to the market ahead of many branded drugs that are moving off patent,” says BCC Research analyst Kim Lawson. “This activity has also included increased acquisition activity, as companies with branded drugs look to buy companies with complementary pipelines as well as to license or acquire emerging technology or innovative techniques such as drug-delivery technology. To keep costs down, companies are also seeking operational efficiencies.”

Obesity Drugs and Therapies: Technologies and Global Markets (HLC188A) analyzes the current therapy technology, drug development landscape and future direction of the industry. Analyses of global market drivers and trends, with data from 2014 and 2015, estimates for 2016, and projections of CAGRs through 2021 also are provided.

Editors and reporters who wish to speak with the analyst should contact Steven Cumming at steven.cumming@bccresearch.com.

Obesity Drugs and Therapies: Technologies and Global Markets( HLC188A )
Publish Date: May 2016    

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