Strategic Analysis of the World Biogenerics Market

SUMMARY

Regulatory Affairs Hinder Development of the Biogenerics Market

While the development of an abbreviated regulatory pathway is crucial to the approval of new biogenerics, growing concerns about the lack of a definition for bioequivalence and increasing pressure from major biotechnology companies anxious to defend their ailing blockbuster patents are preventing this from happening. This is currently the single largest restraint facing the biogenerics market. Although the European Agency for the Evaluation of Medicinal Products (EMEA) is now accepting applications for abbreviated market approval of new biogenerics, the United States is yet to develop a shorter regulatory path to market. On the other hand, biogenerics are thriving in less regulated countries such as India and China.

This Frost & Sullivan research service provides an in-depth strategic analysis of the global biogenerics market along with an assessment of its immense potential. It discusses various critical issues such as regulatory affairs that could hinder the development of the market. The detailed pipeline analysis includes anticipated patent expiry dates for the most successful biopharmaceuticals and analysis of forthcoming biogeneric products expected to be launched from 2005 to 2011.

Large Potential Market Size for Biogeneric Compounds

Several blockbuster drugs are expected to lose patent protection over the next ten years, paving the way for competitors to legally manufacture biogeneric versions of these products and market them. This represents tremendous potential for biogeneric manufacturers. Since there is no real need to invest in drug discovery and clinical development, they gain from being able to sell the biogeneric products at considerably lower prices than the patented original drugs.

This is expected to not only encourage consumers to purchase generic alternatives, it is also receiving support from governments and healthcare providers seeking to reduce expenditure on therapeutics. However, the high manufacturing costs for biologics compared to conventional small molecule pharmaceuticals present a challenge to biogenerics manufacturers. "The most successful participants are likely to be those that develop their own proprietary expression systems to minimise costs, and above all, ensure that products are bioequivalent and produced to full current good manufacturing practice (cGMP) standards," notes the analyst of this research service.

Biogenerics Market Anticipated to Expand Rapidly as Participants Overcome Regulatory Barriers

The large number of blockbuster biopharmaceuticals expected to lose patent protection in the forecast period indicates that the biogenerics market will rapidly grow to billion-dollar levels once regulatory barriers are overcome. Frost & Sullivan estimates that the biogenerics markets in Europe and the United States alone have the potential to generate sales of $16.39 billion by 2011 at an average annual growth rate (AAGR) of 69.8 percent.

"Once regulations are clearly established, a flood of biogeneric alternatives is anticipated to hit the market soon after the expiry of each blockbuster patent," remarks the analyst. "As a result, biotechnology companies are likely to go to great lengths to reinforce their patents, reformulate existing products and improve delivery systems in an effort to maintain the customer base for their branded products."

TABLE OF CONTENTS

• 1. Executive Summary
  • 1. Executive Summary
    • 1. Executive Summary
• 2. Introduction
  • 1. Market Overview
    • 1. Glossary and Abbreviations
    • 2. Introducing the Biogenerics Market
    • 3. First Biogeneric Reaches the Market
  • 2. Regulatory Affairs
    • 1. Regulatory Affairs in the United States
    • 2. Regulatory Affairs in Europe
    • 3. Regulatory Affairs in Rest-of-World
• 3. Challenges Drivers and Restraints
  • 1. Industry Challenges
    • 1. Analysis Assumptions
    • 2. Biogenerics Industry Challenges
      • a. Early biogenerics likely to Command High Prices
      • b. Lack of a Clear Definition of Bioequivalence Hinders the Development of Regulatory Guidance
      • c. Cost and Feasibility of Biogeneric Testing Procedures
      • d. Concerns over Drug Quality from India and China
      • e. Stringent Demands for Drug Quality
      • f. Receptivity of Customer Base over the Quality of Biogenerics
      • g. Availability of Bulk Biologic Drug Components
  • 2. Market Drivers and Restraints
    • 1. Market Drivers
      • a. Large Market Size and Profit Margins for Biogeneric Compounds
      • b. Large Number of Biopharmaceuticals about to come off Patent
      • c. Biopharmaceuticals Market Continues to Grow
      • d. Low Competition in the Initial Phases of Biogenerics Market Developmen
      • e. Governmental Demand for Cheaper Products
    • 2. Market Restraints
      • a. Originators of Biologics Defend Their Products
      • b. Slow Pace of Regulatory Proceedings
      • c. Complexity of Patent Battles Slows Market Growth
      • d. No Biogeneric Products Yet on the Market
      • e. BIO Opposition to the Biogenerics Industry
• 4. Market Analysis
  • 1. Biopharmaceuticals Market
    • 1. Market Engineering Measurements
    • 2. Sales Forecast
  • 2. Biogenerics Market
    • 1. Market Engineering Measurements
    • 2. Sales Forecast
• 5. Pipeline Analysis
  • 1. Biogenerics Pipeline
    • 1. Forthcoming Patent Expiries
    • 2. Forecast Biogenerics Pipeline
• 6. Competitive Analysis
  • 1. Competitors in the Biogenerics Market
    • 1. Competitive Analysis
    • 2. Competitive Profiles
• 7. Strategic Analysis and Recommendations
  • 1. Strategy for the Biogenerics Market
    • 1. Strategic Analysis
    • 2. Strategic Recommendations
• 8. Frost & Sullivan Awards
  • 1. Introduction to Frost & Sullivan Awards
    • 1. Industry Recognition
  • 2. Frost & Sullivan Award Recipients
    • 1. Market Leadership Award
    • 2. Growth Strategy Leadership Award
    • 3. Entrepreneurial Company Award
• 9. Decision Support Databases
  • 1. Pharmaceutical and Biotechnology Market Metrics
    • 1. Number of Biotechnology Companies (1999-2006)
    • 2. Biotechnology Private Investment (1999-2006)
    • 3. Biotechnology Government Investment (1999-2006)
    • 4. Total Healthcare Expenditure (1999-2006)
  • 2. Intellectual Property Analysis
    • 1. Patents Granted by EPO (1999 - 2000)
    • 2. Patents Granted by the USPTO (1999-2000)