Biologics Sales Increased 12.5% in 2007 to $75B, Nearly Double 6.4% Increase of Traditional Pharmaceuticals
Worldwide sales of biologic medications increased by 12.5% in 2007 to $75 billion, nearly double the 6.4% increase in sales of traditional pharmaceuticals, according to a recent report by IMS Health, the Newark Star-Ledger reports. However, the increase was not as high as 2006, when sales increased by 18.2%, according to IMS. The Star-Ledger reports that "while the industry will continue to prosper and has many innovative medicines in the pipeline ... the growth rate may level off during the next five years."
IMS Senior Vice President Murray Aitken said, "The biotech market has expanded dramatically during the past five years, consistently exceeding overall pharmaceutical market growth two- to threefold," adding, "Recent innovations, the continued expansion of approved indications for existing products and the gradual uptake of biotech products outside the U.S. have fueled that growth and improved the quality of life for millions of patients across a growing number of disease areas" (Cohen, Newark Star-Ledger, 6/18).
Aitken said, "Loss of exclusivity and competition from biosimilars, crowded therapy areas with weaker sales growth, payers showing more reluctance to fund innovative drugs without compelling value propositions and safety concerns for some therapies will all contribute to a more moderate growth environment through 2012." According to the Wall Street Journal, insurers "are pressuring companies to prove the medical and economic reasons for adopting new products over existing ones." In addition, the IMS report found that "the challenge of balancing patient safety with efficacy of treatment is particularly acute in many of the therapy areas where biotech products have become an important part of treatment protocols" (Shwiff, Wall Street Journal, 6/18).
Aitken said that the industry has a strong research and development pipeline, with six products expected to be launched by the end of the year that have the potential to reach $1 billion in sales (Newark Star-Ledger, 6/18).
