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The Specialty Pharmaceuticals Market size is estimated to grow by USD 406.6 billion at a CAGR of 13.64% between 2023 and 2028. The specialty pharmaceuticals market is experiencing significant growth due to increasing government healthcare expenditure, leading to a higher demand for research and development in this sector. To contain costs, specialty pharmaceutical companies are focusing on innovative R&D strategies, collaborations, and partnerships. Government initiatives and various non-profit organizations are also playing a crucial role in spreading awareness about complex diseases and their treatments, thereby driving the need for specialized pharmaceutical solutions. This heightened focus on R&D, cost containment, and disease awareness is expected to shape the future of the specialty pharmaceuticals market in the coming years.
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The market share growth by the oncology segment will be significant during the forecast period. They are primarily used for cancer treatment by limiting the growth and further spread of cancer cells. Several types of oncology drugs exist such as chemotherapy, targeted therapy, immunotherapy, and hormone therapy.
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The oncology segment was valued at USD 80.10 billion in 2018. This type of drug, dosage, and treatment plan depends on the type and stage of cancer, the overall health and medical history of the patient, and the potential side effects of the treatment. They are a vital component of cancer treatment and can have resulted in higher survival rates and improved quality of life for cancer patients. Hence the necessity of this segment in cancer treatment is likely to result in further growth of the market during the forecast period.
The offline distribution segment of the global specialty pharmaceuticals market refers to the traditional distribution channels through which specialty pharmaceuticals are sold and supplied outside the online marketplace. It includes channels such as physical retail stores, pharmacies, hospitals, clinics, and other healthcare facilities and caters to patients who choose to purchase medications from brick-and-mortar establishments. They ensure patients have greater access and provide direct interaction with healthcare providers for personalized guidance and recommendations regarding drug dosage, and potential side effects. Hence this segment of the market is vital in ensuring access to medications for patients worldwide, which is likely to influence further market growth during the forecast period.
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North America is estimated to contribute 51% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that will shape the market during the forecast period. In the region, the US and Canada are the largest markets primarily due to the increasing government expenditure into supporting cancer treatment R&D and the increasing prevalence of cancer. For instance, the Fiscal Year 2021 (FY21) Omnibus Appropriation Bill was signed in December 2020, allocating USD 6.56 billion for the National Cancer Institute (NCI). Moreover, other factors such as advanced technology, a well-established healthcare infrastructure, and numerous specialty pharmaceutical manufacturers are likely to further boost the growth of the regional market during the forecast period.
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Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market. The report also includes detailed analyses of the competitive landscape of the market and information about 21 market companies, including:
AbbVie Inc. - The company offers specialty pharmaceuticals for Immunology, Neuroscience, and Oncology.
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
Women's Health is a critical area in healthcare, encompassing treatments for various chronic conditions and genetic conditions through specialty drugs and biopharmaceuticals. These therapies often involve high-cost medications and high-complexity medications, administered via parenteral (injectable) or transdermal delivery methods. Patients requiring specialty medical therapy may visit physician offices for prescriptions of respiratory, oral, or parenteral drugs. For instance, treatments like growth hormone or therapies for Hepatitis C utilize drug molecules and blood-derived products. Managing these conditions involves therapeutic intervention with complex molecules tailored to specific patient populations. However, challenges such as high touch medications and the need for offline distribution channels underscore the complexities of ensuring accessibility and efficacy in women's health treatments.
Key Market Driver
The increasing demand for R&D due to government healthcare expenditure is driving market growth. Small laboratory studies and large-scale production of specialty pharmaceutical products require the ability to produce an enriched sample of small molecules, cells, proteins, nucleic acids, or clean solutions. Adhering to regulations regarding the purity and consistency of specialty pharmaceutical products demands a well-structured plan and a vast amount of R&D investment. For example, certain pharmaceutical companies spend approximately 15%-20% of total revenue on R&D activities. This is likely to further boost the demand for specialty pharmaceutical products resulting in manufacturers coming up with innovative and advanced specialty pharmaceuticals to cater to the demand. Hence, the market is likely to witness further growth during the forecast period.
The increasing geriatric population is a key trend in the market. The growing geriatric population increases the prevalence of chronic illnesses resulting in higher demand for various therapeutic drugs for their effective treatment. For them, to have a high quality of life, they need frequent, continuous medical treatment by skilled public healthcare professionals. The number of US adults older than 65 years is predicted to double by 2030 according to Centers for Disease Control and Prevention (CDC) statistics.
Hence, this will increase the burden on national healthcare systems to provide more effective services to treat age-related conditions and diseases, which requires greater healthcare expenditure. The overall national healthcare spending is estimated to increase by 25% by 2030 as per CDC statistics. To treat chronic diseases, national healthcare regulatory bodies are promoting the usage of specialty pharmaceuticals. This is resulting in a higher number of emerging specialty pharmaceutical manufacturers in the US and Europe and is likely to boost the market growth and trends during the forecast period.
Stringent regulations are challenging market growth. Regulatory bodies meticulously examine drug-related data before medication approval, especially for specialty pharmaceuticals. The US Food and Drug Administration is an important regulatory body that ensures the safety, efficacy, pharmacological data, pharmacodynamic effects, and drug interactions. If it doesn't meet the required standards the manufacturer will receive a complete response letter (CRL) or could even face complete rejection
Moreover, on receiving a CRL, a drug manufacturer must reveal more data regarding the drug which might even necessitate additional clinical trials. This will further increase R&D expenditure due to which some pharmaceutical companies might withdraw their applications altogether. Hence such factors are likely to pose a hindrance to the growth of the market during the forecast period.
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The market report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Specialty Pharmaceuticals Market Customer Landscape
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
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Women's Health encompasses a broad spectrum of medical concerns ranging from growth hormone treatments to therapies for respiratory, oral, and parenteral conditions. These include transdermal delivery methods often managed through retail pharmacies and specialty pharmacies. In cases like Sickle Cell Disease and other chronic and rare diseases, advancements in drug launches and cancer prevention are crucial. The landscape involves offline channels and social media for dissemination, supporting specialty drugs and managing high cost medications for high complexity medications and high touch medications.
Moreover, addressing chronic conditions among specific patient populations requires parenteral administration and injectable therapies, alongside transdermal delivery. Both offline distribution channels and online distribution channels are essential, bolstered by support programs and channels for the aging population, those with HIV, genetic diseases, and cardiovascular diseases. The pharma industry plays a critical role in managing drug molecules, genetic conditions, and therapeutic intervention with biopharmaceuticals and blood derived products. This includes complex molecules and specialty medical therapy administered through physician offices and prescriptions, impacting conditions like Hepatitis C, rare diseases, and cancers, influencing mortality and morbidity rates, including the incidence of rheumatoid arthritis.
Market Scope |
|
Report Coverage |
Details |
Page number |
168 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 13.64% |
Market growth 2024-2028 |
USD 406.6 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
11.73 |
Regional analysis |
North America, Europe, Asia, and Rest of World (ROW) |
Performing market contribution |
North America at 51% |
Key countries |
US, China, Germany, Japan, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
AbbVie Inc., Amgen Inc., Biodexa Pharmaceuticals PLC, Bristol Myers Squibb Co., CVS Health Corp., Endo International Plc, F. Hoffmann La Roche Ltd., Gilead Sciences Inc., Humana Inc., Hyphens Pharma Pte Ltd., Johnson and Johnson Services Inc., Kroger Co., McKesson Corp., Merck and Co. Inc., Novartis AG, Pfizer Inc., Sanofi SA, Supernus Pharmaceuticals Inc., Teva Pharmaceutical Industries Ltd., The Cigna Group, UnitedHealth Group Inc., and Viatris Inc. |
Market dynamics |
Parent market analysis, Market forecasting growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Distribution Channel
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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