Charting success in the global biosimilars marketplace Bookmark has been added
Charting success in the global biosimilars marketplace
Stay on course with valuable biosimilars insights
Biosimilars are gaining traction across the globe. In fact, analysts expect the worldwide biosimilars market to reach approximately $35 billion by 2020.ͥ How are you positioned to win in the global biosimilars environment?
Winning with biosimilars: Opportunities in global markets
While developed markets will remain important for biosimilars manufacturers, Deloitte analysis indicates that long-term growth may be fueled by emerging markets. To win in these markets, biosimilars players will need to adopt a long-term strategy to provide affordable products and improved access to the large pockets of non-consumption. This will entail growing sales – though at a smaller margin than in developed markets – among an increasingly affluent and health-conscious set of the population. It will also require selecting therapeutic areas (TAs) that have the largest potential impact for the local population.
Participating companies will need to provide access, partner for local capabilities, and understand the importance of branding and building customer engagement in meaningful ways.
iAllied Market Research, Global Biosimilars / Follow-on-Biologics Market, July 2014
Playing to win in the global biosimilars environment
In this article featured in Medical Marketing and Media Magazine, Deloitte Consulting Principals, Faith Glazier and Rob Jacoby, cover the critical success factors necessary for navigating the global biosimilars' playing field.
Although the United States is generally believed to be the next big market for biosimilars, long-term growth will be fueled by the emerging BRICS markets (Brazil, Russia, India, China and South Africa) and MIST markets (Mexico, Indonesia, South Korea, and Turkey) through addressing the huge volume of non-consumption. Further, the conducive regulatory environment, inability to pay for high priced biologics and extensive experience of lower cost manufacturers should boost the attractiveness of these markets for companies with biosimilars.
Biosimilars: Making the most of an “inexact” science
As with most uncharted territory, generic and branded drugmakers should approach their entry into the new field of biosimilars strategically. There are key questions to answer: Is it a risk worth taking? Is the cost prohibitive? Can we afford to make the kinds of capital investments needed to succeed?
In addition to asking the tough questions, executives have to contend with comparisons to generics in terms of cost and development. However, the cost savings of biosimilars will likely not be realized to the same extent as generics. What hurdles will manufacturers need to overcome to enter the space?
The five unanswered questions surrounding biosimilars
The biosimilars market could be a prospective gold mine for major pharma companies, generics manufacturers and even smaller drug producers. However, before moving forward, health care and life sciences organizations should consider the answers to five key questions:
- Can the business afford it?
- What are the state and federal legislative mandates that may determine the growth and expansion of this new sector?
- What is the organizational appetite for investment?
- What kind of pricing structure needs to be put in place?
- Will we experience the level of consumer discounts long associated with the growth of generic drugs?
Biosimilars players determined to push ahead could end up capturing a significant share of the estimated tens, even hundreds, of billions in biosimilar-generated revenue over the next decade.