Biosimilars are biopharmaceutical drugs which are similar to previously marketed biological drugs known as reference biologics. Biosimilars help provide cost-effective treatment options for chronic diseases such as cancer, diabetes, and autoimmune diseases. Biosimilars offer savings of 30-50% in terms of cost as compared to their reference biologics.

The global Biosimilars Market is estimated to be valued at US$ 33.87 Mn in 2024 and is expected to exhibit a CAGR of 5.9% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.

Market Opportunity:

The opportunity to reduce healthcare expenditure presents a high growth opportunity for the biosimilars market. Rising healthcare costs have burdened governments and individuals across the world. With patents of major biologics expiring, the approval and uptake of low-cost biosimilars provides an avenue to lower the costs of treating chronic diseases. As biosimilars offer significant cost savings compared to their reference biologics, their increased adoption can help lower the financial burden on healthcare systems. It is estimated that increased use of biosimilars in the EU5 alone until 2025 could result in savings of €54 billion. Similarly, in the US, biosimilars are projected to reduce drug costs by $54 billion from 2020 to 2024. This substantial cost reduction potential presents a major market opportunity for biosimilar manufacturers to gain market share and for healthcare systems to reduce overall expenditure.

Porter's Analysis

Threat of new entrants: The biosimilars market has high R&D and clinical trial costs which act as entry barriers for new companies. Also, established brands have strategic supply agreements with major healthcare providers.

Bargaining power of buyers: The bargaining power of buyers is moderate as the demand for affordable biosimilars is increasing. However, buyers still prefer established brands due to brand recognition and loyalty.

Bargaining power of suppliers: A few major biopharma companies dominate the supply side. This gives them significant influence over prices of biosimilar drugs. Supplier concentration is expected to reduce with more market entries.

Threat of new substitutes: New antibody drugs and targeted therapies pose a potential threat, but biosimilars still offer cost savings compared to reference biologics.

Competitive rivalry: The market exhibits high competition due to increasing number of players introducing biosimilars of top-selling biologics. Players compete on quality, pricing and supply partnerships.

SWOT Analysis

Strengths: Biosimilars provide affordable treatment options. Growing prevalence of chronic diseases boosts demand.

Weaknesses: High R&D costs and regulatory approvals. Limited interchangeability with reference drugs limits adoption.

Opportunities: Patent expiries of major biologics open large market opportunities. Emerging markets to drive volume growth.

Threats: Pricing pressures due to reference drugs. Stringent regulations can delay market entry of biosimilars.

Key Takeaways

The Global Biosimilars Market Size is expected to witness high growth supported by patent cliff of major biologics and increasing demand for affordable treatments. The global Biosimilars Market is estimated to be valued at US$ 33.87 Bn in 2024 and is expected to exhibit a CAGR of 5.9% over the forecast period 2024 to 2031.

The Asia Pacific region currently dominates the market and is expected to grow at the fastest pace due to rising healthcare spending, presence of generic manufacturers and rapidly aging population.

Key players operating in the biosimilars market are U.S. Environmental Protection Agency (EPA), European Chemicals Agency (ECHA), Food and Drug Administration (FDA), Ministry of Environment, Forest and Climate Change (India), National Health Commission (China), Canadian Food Inspection Agency (CFIA), National Institute for Health and Welfare (THL) (Finland), Federal Institute for Risk Assessment (BfR) (Germany), National Institute of Food and Drug Safety Evaluation (KFDA) (South Korea), Ministry of Ecology and Environment (China), Environment Agency (United Kingdom), Ministry of Health, Labour and Welfare (Japan), Australian Government Department of Agriculture, Water and the Environment, Health Canada, Ministry of Health (Brazil). The top players are focusing on expanding their product portfolios and supply networks to consolidate market shares.

Get More Insights Here

https://www.ukwebwire.com/biosimilars-market-size-share-growth-outlook-2023/

https://coolbio.org/virtual-reality-is-changing-the-face-of-gaming-industry/