Favorable demographics and obesity rates will bolster demand for industry products
Los Angeles, CA (PRWEB) February 04, 2013
The Obesity Medication Manufacturing industry will grow along with Americans' waistlines. While the industry has benefited from rising obesity rates and other demographic trends, its ultimate success is contingent upon the regulatory approval of its drugs. During the five years to 2013, IBISWorld estimates that revenue will fall at an average annual rate of 0.8% to $516.1 million, largely due to the declines associated with the withdrawal of Abbott Laboratories' Meridia from the market. “Over the long term, the industry will experience rising demand for these drugs as the population becomes increasingly obese and consumers have more money available to spend on obesity medication,” says IBISWorld industry analyst Nima Samadi. In 2013, revenue is anticipated to grow 6.3%.
Demand for Obesity Medication Manufacturing industry products is bolstered by favorable demographics and obesity rates, government and private spending on health and advances in industry products. According to the Centers for Disease Control and Prevention (CDC), more than one-third (35.7%) of adults are considered obese. “Since the early 1960s, the prevalence of obesity among adults more than doubled,” adds Samadi. “With the obese population growing, consumers will increasingly turn to obesity medication to help them in their battle to lose weight.”
The industry has been hurt by patent expiration and obesity medication bans over the past five years. Meridia was withdrawn in the United States and elsewhere in 2010 after clinical trial data indicated that it raised the risk of heart attack and stroke. The removal of this drug from the market resulted in industry-wide revenue declines in 2010 and 2011. Additionally, Roche's Xenical lost its patent in December 2009 and is anticipated to face mounting competition from generics going forward. However, Xenical was introduced as an over-the-counter medicine by major player GlaxoSmithKline under the name Alli with a huge marketing push in 2007. This was partially responsible for the dramatic uptick in industry sales in 2007. The industry has a moderate level of concentration. Because the approval process and regulation are so extensive, concentration is moderated. Additionally, the OTC obesity medication segment of the industry only has one player. Alli is the first and only OTC obesity medication manufactured in the United States. On the other hand, prescription obesity medication is more fragmented and there are different active ingredients, drugs and brands.
The outlook for the Obesity Medication Manufacturing industry is positive, with revenue forecast to grow through 2018. In mid-2012, the FDA approved Arena Pharmaceuticals' Belviq and Vivus' Qnexa. Orexigen Therapeutics' Contrave is currently undergoing clinical trials, and its approval could provide an additional boost to industry revenue in the next five years. For more information, visit IBISWorld’s Obesity Medication Manufacturing in the US industry report page.
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IBISWorld industry Report Key Topics
This industry manufactures medication that is used to treat obesity. The FDA has approved long-term and short-term drugs for the long-term treatment of obesity. Diet supplements are not included in this industry.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.