Gastrointestinal Therapeutics Market Report

Gastrointestinal Therapeutics Market Analysis Report By Type (Branded, Generics), By Route of Administration, By Application (Ulcerative Colitis, Crohn’s Disease, GERD), By Distribution Channel, And Segment Forecasts, 2018 - 2025

  • Published Date: Mar, 2018
  • Base Year for Estimate: 2016
  • Report ID: GVR-2-68038-338-6
  • Format: Electronic (PDF)
  • Historical Data: 2014 - 2016
  • Number of Pages: 132

Industry Insights

The global gastrointestinal therapeutics market size was valued at USD 51.9 billion in 2016 and is slated to expand at a lucrative CAGR of 6.6% over the forecast period. Increasing adoption of biologics for treatment of gastrointestinal diseases is the primary driver of the market. According to the Centers for Disease Control and Prevention (CDC), it is estimated that approximately 1-1.3 million people are suffering from Inflammatory Bowel Disease (IBD) in U.S. Prevalence of Crohn’s disease and ulcerative colitis is 201 per 100,000 adults and 238 per 100,000 adults, respectively.

North America gastrointestinal therapeutics market

A wide range of new generation therapeutics targets that include novel small molecules and cellular therapy are currently under investigation. These include tofacitinib, ustekinumab, mongersen, and vedolizumab. This influx is anticipated to be a consequence of high prevalence of gastrointestinal diseases globally. Vedolizumab is emerging as a first-line biologic therapy for Crohn’s disease. Currently, the U.S. FDA has approved Humira, Amjevita, Cimzia, Remicade, Renflexis, Inflectra, Tysabri, and Entyvio for the treatment of Crohn’s disease.

Some studies have indicated that biologics exhibit greater long-term efficiency. According to a study conducted by University of Chicago, usage of biologics has resulted in an overall decrease in the number of surgeries by approximately 40.0%, emergency room visits by 60.0%, and hospitalizations by 50.0%.

Similarly, the National Institute carried out a study on effectiveness of infliximab in treatment for Health Research and it was reported to be a cost-effective solution in episodic treatment of active Crohn’s Disease. Increasing need for cost containment in drug development as well as administration costs is likely to fuel growth opportunities for biologics. Advent of targeted treatment alternatives has led to development of more personalized biologics.

Type Insights

Branded gastrointestinal drugs held the dominant share by product in 2016. However, it is expected to witness a decline in CAGR throughout the forecast period. This decline can be attributed to increasing penetration of generics in the market, resulting in sales erosion of leading brands and fewer novel product launches. Some of the high revenue generating drugs in gastrointestinal therapeutics that are slated to expire in the near future are Emend, Sandostatin, Humira, Linzess, and Aloxi. This is anticipated to restrict growth of branded drugs.

Moreover, patients suffering from acute gastrointestinal bacterial infections, previously treated with antibiotics, are unwilling to adopt new treatment regimens. In addition, increase in multidrug-resistant strains poses a challenge during treatment, which is expected to hinder the growth of branded drugs.

The generic segment is expected to grow at an exponential rate throughout the forecast period owing to consistent expiries of patents, cost-effectiveness of generics, and initiatives by government organizations for promoting usage of generics in emerging economies. In addition, major pharmaceutical companies are consistently striving to launch generic versions of their branded counterparts to recover losses caused by patent expiration.

Branded drug manufacturers and generic producing firms are collaborating for producing generic drugs after patent expiry, which is expected to boost the growth of generics. In addition, major firms are increasingly focusing on developing generics owing to increase in off-patented drugs in the market. However, marketing exclusivity given by the FDA to patent holders for different indications is anticipated to hinder market growth to a slight extent.

Route of Administration Insights

In 2016, intravenous accounted for the dominant share on the basis of route of administration. The substantial share is anticipated to be a result of benefits associated with IV products. It can also be attributed to high price of IV products as compared to oral products. Such products include Humira, Sandostatin, Aldurazyme, Elelyso, Naglazyme, Myozyme, Vimizim, Donnatal, Pamine, Aloxi, Pepcid AC, Remicade, Tysabri, Entyvio, and Remsima.

In terms of volume, oral products accounted for the largest share; however, in terms of revenue, the intravenous segment accounts for the dominant share. Benefits such as ease of administration and long-term cost efficiency are major factors fueling the adoption of these products over the years.

Oral products accounted for the second-largest share in the market for gastrointestinal therapeutics in 2016. This is a consequence of high efficacy of oral gastrointestinal agents due to direct contact with affected areas. However, other routes such as intravenous and transdermal have greater bioavailability in comparison to oral products, which may result in considerable decrease in demand. In addition, oral products are not found to be convenient for patients in younger age groups. Moreover, there is a greater probability of contraindication and toxic drug interactions in case of patients undergoing gastrointestinal cancer treatment.

Application Insights

The others segment accounted for the largest share by application in 2016. This segment includes opioid-induced constipation, chronic idiopathic constipation, diarrhea, recurrent gastrointestinal infections, nausea, gastrointestinal stromal tumor, pancreatic insufficiency, and irritable bowel syndrome. The substantial share can be attributed to a wide range of applications for which gastrointestinal drugs have been used consistently over the previous years. Frequent number of drug launches is also responsible for increased scope for growth.

Ulcerative colitis accounted for the second-largest share in the gastrointestinal therapeutics market in 2016. Growth of this segment can be attributed to easy availability of drugs to treat this condition. The segment is also anticipated to grow at a considerable rate owing to high clinical urgency to curb growing prevalence of ulcerative colitis. This high prevalence is due to poor prognosis and consumption of unhealthy food, which may result in high probability of disease recurrence.

The Crohn’s disease segment is anticipated to witness a lucrative growth rate throughout the forecast period. Rising prevalence of lifestyle-induced conditions such as excessive drinking and high incidence of chronic diseases such as cancer and diabetes, are major growth-rendering drivers. According to the CDC, approximately 1.0-1.3 million people are suffering from Inflammatory Bowel Disease (IBD). In U.S., prevalence of Crohn’s disease is 201 per 100,000 adults.

Distribution Channel Insights

In 2016, retail pharmacy accounted for the dominant share in terms of distribution channel owing to high affordability and accessibility to retail stores. As number of prescription medicines being reimbursed is increasing, it is encouraging patients to purchase medicines from retail pharmacies. Retail pharmacists also recommend drug substitutes that prevent adverse drug interactions.

These factors are likely to boost customer inclination toward retail stores. In case retail pharmacists have any concerns regarding prescribed medicines, they recommend alternatives for the same, thus ensuring higher safety. Advent of pharmacy chains such as CVS Health is a major contributor to the share of the retail segment. Adoption of digitalized systems in retail pharmacies to reduce risk of errors in prescriptions is also anticipated to fuel growth over the coming years.

Global gastrointestinal therapeutics market

Online pharmacies are expected to exhibit lucrative growth during the forecast period. This growth is anticipated to be a consequence of associated benefits such as high convenience for bed-ridden patients who find it difficult to purchase medicines from hospitals or retail stores. In addition, growing incidence of chronic diseases has resulted in a wide gap in the supply of and demand for major drugs. The aforementioned factors are expected to present remunerative growth prospects for online pharmacies during the forecast period.

With the advent of online pharmacies, tracking and order procurement have become convenient. Supply Chain Management (SCM) in online pharmacies enables integration of various market intermediaries of the delivery channel, which reduces overall cost, thereby further driving demand for this segment.

Regional Insights

The North America market accounted for the largest share in 2016 and is expected to maintain its position during the forecast period. This substantial share can be attributed to unprecedented change in lifestyle, resulting in greater incidence of gastrointestinal diseases.

Moreover, presence of government initiatives aimed at preventing as well as treating gastrointestinal diseases is expected to drive the market. For instance, the Integrated Global Action Plan for Diarrhoea by UNICEF and WHO aims at minimizing preventable childhood deaths as a result of diarrhea by providing interventions and services to raise awareness and provide access to treatment and preventive measures.

Asia Pacific is anticipated to exhibit exponential growth throughout the forecast period. This is likely to be fueled by consistent efforts undertaken by key players, which include R&D investments as well as commercialization of branded drugs at a relatively lower price. In addition, urgent need to curb high incidence rate of gastrointestinal disorders and technological upgradation of healthcare infrastructure are predicted to present the regional market with high potential growth opportunities over the forecast period.

Gastrointestinal Therapeutics Market Share Insights

Some of the key players in the market are Takeda Pharmaceuticals, Valeant Pharmaceuticals, Allergan plc, and Bayer AG. These key players have extensively employed competition sustainability strategies such as new product development and regional and distribution channel expansion to gain a higher share in the market. Moreover, increased focus on refining operation and supply chain management has facilitated key players to maintain a competitive edge.

For instance, in October 2016, Allergan plc completed a divesture of its generics business by selling Anda, Inc. to Teva Pharmaceuticals Industries Ltd. This divesture was carried out to increase the company’s focus on branded pharmaceuticals and expand key therapeutics areas. Similarly, in January 2016, Takeda Pharmaceuticals entered into strategic collaboration with Cour Pharmaceutical Development to develop advanced therapeutics for a wide range of gastrointestinal diseases.

Report Scope

Attribute

Details

Base year for estimation

2016

Actual estimates/Historical data

2014 - 2016

Forecast period

2017 - 2025

Market representation

Revenue in USD Million and CAGR from 2017 to 2025

Regional scope

North America, Europe, Asia Pacific, Latin America, Middle East & Africa

Country scope

U.S., Canada, Germany, U.K., Japan, China, India, Brazil, Mexico, South Africa

Report coverage

Revenue forecast, company share, competitive landscape, growth factors and trends

15% free customization scope (equivalent to 5 analyst working days)

If you need specific market information, which is not currently within the scope of the report, we will provide it to you as a part of customization


Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis on latest industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global gastrointestinal therapeutics market on the basis of type, route of administration, application, distribution channel, and region:

  • Type Outlook (Revenue, USD Million, 2014 - 2025)

    • Branded

      • Aminosalicylates

      • Antacids

      • Enzyme Replacement Therapies

      • Proton-pump Inhibitors

      • Laxatives

      • Antiemetics

      • H2 Antagonists

      • Antidiarrheals

      • Biologics

      • Others

    • Generics

  • Route of Administration Outlook (Revenue, USD Million, 2014 - 2025)

    • Oral

    • Intravenous

    • Others

  • Application Outlook (Revenue, USD Million, 2014 - 2025)

    • Ulcerative Colitis

    • Crohn’s Disease

    • GERD

    • Others

  • Distribution Channel Outlook (Revenue, USD Million, 2014 - 2025)

    • Hospital Pharmacies

    • Retail Pharmacies

    • Online Pharmacies

  • Regional Outlook (Revenue, USD Million, 2014 - 2025)

    • North America

      • U.S.

      • Canada

    • Europe

      • U.K.

      • Germany

    • Asia Pacific

      • Japan

      • China

      • India

    • Latin America

      • Brazil

      • Mexico

    • Middle East & Africa

      • South Africa

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