"Strategic plans to divide the R&D expenses and enable faster entry to market is vital driver impacting industry dynamics of global antibiotics market"
The antibiotics market was valued at USD 39.8 million in 2015 and is expected to witness a CAGR of 4.0% over the forecast period. Increasing efforts are being witnessed toward the development of advanced products. According to the data published by the Pew Charitable Trust, in March 2016, about 37 promising molecules were being investigated within the U.S. market. Majority of these, are in phase II clinical trials and are anticipated to hit the market between 2018 - 2020. Furthermore, supportive government legislations, such as the Generating Antibiotics Incentives Now (GAIN) Act are expected to expedite the approval process. GAIN Act has provisions which facilitate development of therapy against antibiotic resistant pathogens.
The primary factor for any product or market to flourish is its demand. This demand is anticipated to increase due to the predicted rise in the incidence of infectious diseases across the globe over the forecast period, emerging infectious diseases, and the current gap in supply and demand of antibiotics.
Diarrhea remains the leading cause of death among children across the globe and it requires antibiotic intervention to prevent this morbidity. Other infectious diseases identified to pose a high burden are HIV/AIDS, pneumonia, malaria, and tuberculosis. Furthermore, emergence of new infections, such as Zika virus and Ebola, are also supporting the development and uptake of antibiotics.
Strategic plans of collaborative development to divide the expenses are now being commonly implemented by the market players. This in turn, is expected to lead to the development of more number of molecules. In addition, public-private collaborations where in fund and innovative R&D approaches are advanced by public bodies to antibiotic developing firms will further support the generation of new pipeline products.
In September 2015, the Department of Health and Human Services signed a five-year agreement with AstraZeneca where in the former will provide development funds amounting to USD 220 million. As per this agreement, 2 molecules with be explored namely, Avibactam and Aztreonam.
However, development of resistance, especially in case of bacterial infections is on the rise and renders the antibiotic or its entire class ineffective, thereby critically impacting the overall antibiotic market. Owing to the high cost of development of the drugs, such incidents act as catalysts in increasing costs of finding alternatives.
According to researchers, the resistance rate is expected to rise over the forecast period, but may vary depending upon the strain, geographies, and patient ethnicity. According to data published by the CDC in 2014, annually about two million people are affected by antibiotic resistance development, of which about 23,000 eventually die.
Global antibiotics market, 2014 - 2024 (USD Million)
"Recently developed monoclonal antibodies along with imidazoles, lincosamides are projected to exhibit sturdy growth over the forecast period."
The antibiotics segment comprising tetracyclines, imidazoles, lincosamides, and monoclonal antibodies held a commanding share in 2015 and are anticipated to grow at a lucrative growth rate over the forecast period.
Development of monoclonal antibodies for individuals that have developed antibiotic resistance is a key highlight of this segment. Increasing incidence of pneumonia, blood stream infections, and urinary tract infections (UTI) are anticipated to foster the usage of carbapenems class of antibiotics.
"Cell wall synthesis inhibitors dominated the market in 2015."
Majority of the antibiotics, such as penicillins, cephalosporins and carbapenems, form a part of the cell wall synthesis inhibitors class. RNA synthesis inhibitors as well as folic acid synthesis inhibitors are anticipated to witness healthy growth over the forecast period.
The development of several antiviral drugs, which inhibit transcription and reverse transcription process are anticipated to support the growth. Folic acid inhibitor sulfa drugs are anticipated to grow as they have a wide application scope.
"Asia Pacific dominated the antibiotic market owing to the increasing prevalence of infectious conditions, increasing healthcare expenses and government reforms"
Asia Pacific on account of its huge population base, high prevalence of infectious diseases, regulation reforms, and greater usage of generic medicines held a commanding share in 2015. Latin America, especially Brazil with its strong growth in the pharmaceuticals sector is also projected to exhibit remunerative growth. Outbreak of certain viruses such as Ebola in the African region contributed toward the growth of this region.
"New product development focusing on antibiotic resistance is the key strategic undertaking in the antibiotics market"
Some of the key players in this vertical are Pfizer, Inc., Janssen Pharmaceuticals, Abbott, GlaxoSmithKline plc, Sanofi, Novartis AG, Bayer AG, Bristol Myers Squibb Company, Eli Lilly and Company and Astellas Pharma, Inc.
With a very few patented products available currently, generic manufacturers are dominating the market, with respect to the key drugs which are generating revenue. The strategic undertakings include new products developments, regional expansion and collaborative development.
For instance, In August 2016, Pfizer entered into an agreement with AstraZeneca to acquire the development and commercialization rights to its late-stage small molecule anti-infective business, mainly outside the U.S.
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