While the biosimilars manufacturing industry "is at a nascent stage", the impending patent expiries on big-selling biologics will result in the introduction of several new versions and provide impetus to market development.
That is the view of researchers at Frost & Sullivan who have issued a new analysis of the European biosimilars market. The report claims the latter enjoyed revenues of $172.0 million in 2010 and estimates this to reach approximately $3.99 billion in 2017, representing a compound annual growth rate (CAGR) of 56.7%.
F&S analyst Srinivas Sashidhar noted that "price reduction strategies will ensure increased adoption among physicians and patients alike, spurring market advancement". However, he notes that "the need for considerable financial outlays will hinder the entry of small biotech firms", as complex production processes, expensive biological and chemical materials and rigorous trials require significant investments.
The report notes that "the uncertainties and risks for biosimilars manufacturers persist", claiming that companies need to have "strongly integrated R&D, production, sales and marketing processes to ensure market success". It concludes that effective sales communication to the scientific community, "coupled with continuous promotional activities as well as close and constant interaction with doctors and pharmacists", will promote greater uptake of biosimilars.