San Jose, California (PRWEB) February 18, 2013
Follow us on LinkedIn – Advancing age is the common and widely prevalent non-genetic factor influencing the risk of CNS disorders like Alzheimer’s and Parkinson’s, Stroke or Vascular Dementia, Depression, Epileptic Seizures, among others. One of the biggest transformations underway is the shifting demographic structure worldwide. People aged over 60 years currently have doubled as compared to the early 1980s and is expected to quadruple by 2050. This demographic megatrend will not only impact societies and economies worldwide, but will also influence the healthcare/medical sector with CNS drugs poised to emerge as the prime beneficiary of the scenario.
The CNS drugs market continues to face downward pressure as branded drugs, from various CNS drug companies such as UCB, GlaxoSmithKline, Johnson & Johnson, and Pfizer continue to expire. With most of the top selling branded CNS drugs scheduled to come off patent in the coming decade, the market is poised to witness significant pressure as a result of generic erosion as drugs worth millions of dollars in annual sales come under immediate price pressures. For instance, on an average, loss of patent will reduce the manufacturer’s revenue generated by the drug by over 85% within a 2-year period. While branded prescription drugs become cheaper and affordable to patients, branded drug manufacturers stand to incur huge losses as a result of patent expiries. In other words, generics are often priced 30% to 60% cheaper than the off-patent branded drugs resulting in significant cost saving for the healthcare system as a whole, saving consumers billions of dollars each year. However, these consumer savings also implies simultaneously lowering of the YoY growth threshold in the drug product market.
The drug pricing pressure for branded drug manufacturers will additionally be compounded by healthcare cost rationing and government caps. Spiraling healthcare costs is necessitating debt laden governments in developed countries to seek ways to slash costs of healthcare services and drugs. In addition to amendments being made to the reimbursement system, governments are also strategizing to combat escalating drug prices by exerting pressure on pharmaceutical companies to reduce drug prices. Europe is witnessing forced and obligatory use of cheaper generics, taking cue from the US healthcare industry, which saved a massive US$190 billion in costs in the year 2011 as a result of encouraging the proliferation of generic drugs. Drug reimbursement prices therefore will continue to come under severe pressure as governments, which represent the single largest and most powerful drug purchasers, resort to aggressively negotiate prices from drug manufacturers. The scenario will result in shrinking manufacturer margins and drug market value. As the governments’ threshold of willingness to pay for drugs reduces, drug manufacturers unable to meet the pricing pressures run the risk of being dropped from the federal drug reimbursement coverage plans.
Defined as off patent drugs sold under a brand name, branded generics is forecast to emerge into a popular strategy adopted by large pharma companies to diversify into the rapidly growing generics market. Although the trend indicates downward mobility in the value chain, the fact that generics in the US market alone accounts for over 70% of all medical drug prescriptions, makes generics a market segment hard to overlook. The strategy is expected to be especially potent in emerging markets like China, India, and Latin America, where lack of strict regulations surrounding generics makes safety a key issue for unbranded generic drugs. Greater preference and trust of international brands among healthcare consumers in these regions provide ample opportunities for growth of branded generics.
As stated by the new market research report on CNS Therapeutics, the US is the largest regional market accounting for a majority share of global revenues. Asia-Pacific is the fastest growing market with revenues waxing at a CAGR of about 6.0% over the analysis period. Anti-Epilepsy Drugs represents the fastest growing product market with revenues growing at a CAGR of about 6.7% over the analysis period. Anti-Psychotics market is forecast to witness rising incidences of mental illness among children and young adults and growing off-label use of antipsychotic medications, especially for children.
Major players in the global marketplace include AbbVie, Inc., Alkermes Plc, Amneal Pharmaceuticals, LLC, Aspen Pharmacare Holdings Limited, AstraZeneca Plc, BEACON Pharmaceutical Limited, BIAL Group, Boehringer Ingelheim GmbH, Bristol-Myers Squibb, Dainippon Sumitomo Pharma Co., Ltd., Eisai Co., Ltd., Elan Corporation Plc, Eli Lilly and Co., F. Hoffmann-La Roche Ltd., Fabre-Kramer Pharmaceuticals, Inc., Forest Laboratories, Inc., GlaxoSmithKline, H. Lundbeck A/S, Johnson & Johnson, Janssen Pharmaceuticals, Inc., Merck & Co., Inc., Neurocrine Biosciences, Inc., Novartis AG, Otsuka Pharmaceutical Co., Ltd., Pfizer, Inc., Sanofi S.A., Shire Plc, Takeda Pharmaceutical Co., Ltd., Teva Pharmaceutical Industries Ltd., and UCB Group, among others.
The research report titled “CNS Therapeutics: A Global Strategic Business Report” announced by Global Industry Analysts Inc., provides a comprehensive review of market trends, issues, drivers, company profiles, mergers, acquisitions and other strategic industry activities. The report provides market estimates and projections for global CNS therapeutics market in US$ for all major geographic markets such as the US, Canada, Europe (France, Germany, Italy, UK, Spain, and Rest of Europe), Asia-Pacific, Latin America, and Rest of World.
For more details about this comprehensive market research report, please visit –
About Global Industry Analysts, Inc.
Global Industry Analysts, Inc., (GIA) is a leading publisher of off-the-shelf market research. Founded in 1987, the company currently employs over 800 people worldwide. Annually, GIA publishes more than 1300 full-scale research reports and analyzes 40,000+ market and technology trends while monitoring more than 126,000 Companies worldwide. Serving over 9500 clients in 27 countries, GIA is recognized today, as one of the world's largest and reputed market research firms.
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