Market Analysis - Asian Biosimilars 2018
The global Biosimilars market (Follow-On-Biologics) is expected to reach $26.5Billion by 2020 growing at a CAGR of 49.1% from 2015 to 2020 whereas The global biosimilars market alone is expected to reach $6.22 Billion by 2020 from $2.29 Billion in 2015, at a compound annual growth rate( CAGR )of 22.1% from 2015 to 2020.
Geographically, the global biosimilars market is dominated by Europe, followed by Asia-Pacific, Rest of the World (RoW), and North America. However, the Asia-Pacific region is likely to witness the highest growth rate during the forecast period.
There are currently more biosimilar products in development across the Asia-Pacific region than anywhere else in the world, leading to a wealth of opportunities for investigators and patients to take part in biosimilar clinical trials.
- South Korea was the first country worldwide to approve biosimilar versions of etanercept according to international standards. In addition, the country’s regulators are currently working on class-specific biosimilar regulatory guidelines.
- Australia, as of August 2016, has approved 11 biosimilars (based on six originators) – second only to the EU. Australia is the world’s first highly regulated market to allow pharmacy level substitution of a monoclonal antibody biosimilar for an originator.
- As of April 2016, eight biosimilars have been approved in Japan, including two insulin glargine biosimilars.
- A recent report has shown that biosimilars in India have witnessed nearly 20% annual growth for the last financial year and now make up for about 2.5% of the overall biologics market.
Substantial price reductions for biosimilars have been seen within the Asia-Pacific region:
- In Japan and South Korea, formal price discount requirements for biosimilars generally range from 30–50% compared with the originator product.
- In South Korea, biosimilar competition is also driving down the price of originator products, with the price of the original reference product automatically dropping to 70% of its original market price as soon as the first biosimilar product is introduced into the market.
- Price reductions of more than one-third of the originator price have been seen with the introduction of recent biosimilars for rheumatoid arthritis in India.
In China, a biosimilar to insulin glargine was introduced in 2013 (prior to the introduction of China’s official guidelines) with a price reduction of 26% compared with the originator.
A number of factors such as growing pressure to curtail healthcare expenditure, growing demand of biosimilar drugs due to their cost effectiveness, rising incidences of various diseases, increasing number of off-patented drugs, positive outcome in the ongoing clinical trials, and rising demand for biosimilars in different therapeutic applications such as rheumatoid arthritis and blood disorders are propelling the growth of the global market.