Prescription Drugs Market

The global Prescription Drugs Market was valued at USD 0.8 Billion in 2022 and is projected to reach a value of USD 1.4 Billion by 2030 at a CAGR (Compound Annual Growth Rate) of 8.5% between 2023 and 2030.

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Prescription medicine is a pharmaceutical that can only be obtained by individuals who have a valid prescription from a doctor. On the other hand, non-prescription medications can be purchased. Due to various driving forces, the global Prescription Drugs market is expected to grow at a high CAGR during the forecast period. In a contemporary therapeutic setting, administering the proper prescription medications is essential for improving clinical outcomes for nearly every patient with significant diseases. A large number of market participants are conducting clinical trials to develop new medications for a variety of conditions. However, the Prescription Drugs industry has changed significantly due to the rising number of generic alternatives.

The rising introduction of generic versions of various important pharmaceuticals in powerful countries like the United States is one of the primary market factors driving the worldwide market for Prescription Drugs. The rising popularity of these generic substitutes is largely attributable to the fact that they are frequently just as effective as their brand-name counterparts while costing patients a fraction of the price. Individuals unable to afford pricey prescription treatments can frequently use these medications and achieve superior clinical results. The U.S. FDA reported that they had approved 1,171 generic drugs as of October 2019, with 935 of those approvals being final and 236 provisional.

One of the key trends in the market for Prescription Drugs is the rise in R&D expenditures by well-known corporations to create new medications. This is primarily due to the rising prevalence of various chronic illnesses in the global environment. Due to their unmet clinical demands and a desire for successful therapeutic outcomes, this has increased patient demand. As many of these chronic conditions are refractory, it is necessary to provide aggressive prescription medications. Cardiovascular diseases (CVDs), obesity, and hypertriglyceridemia prescription medicine businesses are the main drivers of market growth. The growing worries about maintaining cholesterol levels are anticipated to drive the business. Obesity is one of the primary contributors to diabetes, according to a 2021 article in the Journal of the American Heart Association.

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Economic Insights

The analysis concludes that the IMF's prognosis is more negative right now. According to the IMF, there is a 25% possibility that the global GPD will increase by less than 2% in 2023, and a third of the world's economies will collapse. Yet, the proactiveness displayed by various governments through stimulus and rigorous vaccination allowed most countries and nations worldwide to clean up after the worst and saw reignited growth moving forward. Although it is too early to predict the effects of disruption, many healthcare industries are anticipated to suffer severely. The war in Ukraine and Russia is anticipated to enter darker times, including disruptions in the medical supply chain and understaffed hospitals.

Top Market Trends

1. Increasing Inclination of Obesity Disorders: In the US, 30-53% of new occurrences of diabetes are attributed to obesity. It is anticipated that the elevated triglyceride levels in this population would increase the demand for prescription medications. The industry is anticipated to be driven by altered dietary habits and rising awareness of how crucial triglyceride management is. Partnerships between businesses are facilitating quicker product availability. For instance, Edding, Amarin's marketing partner for Vascepa in China, stated in February 2021 that NMPA had approved a new medication application. The arrival of generic medications in the United States harms the industry and hurts the sales of prescription products like Vascepa.

2. Rising Development of Orphan Drugs: The growing R&D expenditures by well-known businesses to create medicines for rare diseases are one of the major market-driving factors now influencing the Prescription Drugs market. BioMarin, a significant pharmaceutical business creating treatments for rare diseases, is a perfect example of a market participant making such a tactical maneuver. The mucopolysaccharidoses (MPS) group of disorders is among the many orphan diseases treated by BioMarin's product portfolio. The business also has a strong pipeline of orphan medication candidates through various phases of clinical studies. Because orphan diseases have smaller markets than more common diseases like diabetes and cardiovascular disease, it is easier to produce blockbuster treatments for them. This has led to an increase in efforts to treat rare diseases.

3. Increasing Utilization of Generic Drugs: Generic medications have significantly reduced the burden of rising Prescription Drugs expenditures. The Organization for Accessible Medicines has released numbers showing that approximately 3.9 billion generic prescriptions were filled in 2016. Just 26% of all drug prices worldwide, and only 89% of prescriptions filled in the US, are generics. In addition, compared to 7.7% of generic prescriptions, 20.5% of brand-name prescriptions are abandoned. The efficiency of the prescription medicine market has grown due to the widespread acceptance of generic substitution. Using generic medications has improved outcomes, increased adherence, and reduced healthcare costs. The use of generic medications has increased while the proportion of pharmaceutical spending that may be attributable to generics has decreased.

Market Segmentation

The global Prescription Drugs market can be segmented into Type, Therapy Area, Route of Administration, End Users, Distribution Channel, and Region. Based on Type, the market can be categorized into Branded and Generic. In addition, based on Therapy Area, the market can be further fragmented into Oncology, Immunology, Ophthalmology, Respiratory, Dermatology, Gastroenterology, Urology, Gynaecology, Endocrinology, and Other Therapy Areas. Furthermore, based on the Route of Administration, the market can be split into Oral, Topical, Parenteral, and Other Routes of Administration. Moreover, by End Users, the market can be divided into Hospitals, Specialty Clinics, Homecare, and Others. Additionally, based on Distribution Channel, the market can be further segmented into Hospital Pharmacy, Retail Pharmacy, Online Pharmacy, and Other Distribution Channels. Likewise, based on Region, the market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

Based on Type

Branded Drugs Account for the Largest Market Share owing to High Preference and Recommendation Rate

Branded drug segments will dominate the global Prescription Drugs market. Several variables, including the high preference rate for these goods among physicians and pharmacists, the high rate of recommendation for such medications, and the sizeable R&D investments in branded medications, all contribute to the segment's growth. Excellent efficacy, superior clinical results, high patient satisfaction, and extended exposure to multiple therapies are all features of these drugs. Also, this area contains essential and life-saving medications for diabetes, cancer, and the cardiovascular system. Hence, the expansion and dominance of this market segment are due to these factors. Generic drugs will grow with the fastest-growing CAGR during the forecast period due to rising product launches.

Based on the Therapy Area

Oncology to Account for the Largest Market Share Due to Rising Prevalence of Cancer

The oncology segment will lead the largest market share during the forecast period in revenue and share. Factors such as the rising incidence of cancer and the hefty expenditures associated with treating its many forms will widen the footprint of the segment. Due to the rising prevalence of diabetes and other disorders linked to a sedentary lifestyle, the anti-diabetics market is also predicted to develop steadily during the forecast period. Due to the growing need for timely immunizations, particularly for infants and young children, the growing population is also anticipated to support the expansion of the vaccine segment. Throughout the predicted period, the segmentation of sensory organs is expected to expand due to the rising prevalence of ophthalmic illnesses, including dry eye syndrome.

Based on Distribution Channel

Hospital Pharmacies to Account for Majority Share Owing to Frequent Visitation by Patients

Hospital pharmacies will account for the largest market share during the forecast period in terms of revenue and share during the forecast period. The fact that the therapies specified under prescription medications can frequently only be prescribed in hospital settings under the supervision of qualified medical professionals is one of the main factors contributing to the sector domination of hospital pharmacies. Also, various medications used to treat serious illnesses, including cancer and orphan diseases, can only be given intravenously by qualified medical personnel. Clinical outcomes are frequently improved due to the right treatment and management of serious diseases made possible by such excellent therapeutic administration. The availability of more over-the-counter pharmaceuticals and the rising demand for daily medications like anti-diabetics are two of the main drivers of specialty clinic expansion in the anticipated period.

Based on Region

North America to Lead Global Sales Owing to Rising Demand for Efficient and Advanced Products

The global Prescription Drugs market is expected to be dominated by the region of North America during the forecast period. The rising demand for effective and cutting-edge products in the region, notably due to the prevalence of many chronic conditions, was one of the main drivers of North America's dominance in the global market. The region holds a significant share of the global market for these reasons: high healthcare spending, strong and robust medication R&D, and well-known firms in the region that produce generic versions of important drugs. According to the CDC, heart-related illnesses will be the top cause of death in the United States in 2022 for people of both sexes and from most racial and ethnic groups. A CVD-related death occurs in the United States every 36 seconds. The demand for the product is rising as awareness of heart-related illnesses grows in the area. Furthermore, a high triglyceride level is linked to obesity, and in the U.S., two out of every three individuals are fat or overweight (69%), with one out of every three obese (36%).

The Asia Pacific will grow with the fastest-growing CAGR during the forecast period. In recent years, diabetes mellitus has become a severe health concern in the Asian population and is on the rise. The major cause of death in diabetic individuals as well as one of the most severe side effects is CVD. Regarding CVD risk factors, elevated low-density lipoprotein cholesterol is particularly concerning. Growing public concerns about decreasing triglyceride levels are promoting company expansion in this area.

Competitive Landscape

The global Prescription Drugs market is extremely competitive, with a handful of players dominating most of the market. The market leaders focus on extending their product portfolios by investing heavily in their research and development departments. Major firms concentrate on joint ventures, strategic alliances, and regional expansions in developing and prosperous regions.

The key players in the global Prescription Drugs market include - F. Hoffmann-La Roche Ltd. (Switzerland), Mylan N.V. (U.S.), Teva Pharmaceutical Industries Ltd. (Ireland), Sanofi (France), Pfizer Inc. (U.S.), GlaxoSmithKline PLC (UK), Novartis AG (Switzerland), Merck & Co. Inc. (U.S.), Allergan (Ireland), AstraZeneca (UK), Johnson & Johnson Private Limited (U.S.), Hikma Pharmaceuticals PLC (UK), Bristol-Myers Squibb Company (U.S.), Bayer AG (Germany), Boehringer Ingelheim International GmbH (Germany), Dr. Reddy's Laboratories Ltd. (India), Gilead Sciences Inc. (U.S.), Amgen Inc. (U.S.), Eli Lilly & Company (U.S.), AbbVie Inc. (U.S.), Lupin (India), Allergan (Ireland) among others.

Recent Market Developments

· April 2020: Mycophenolic acid delayed-release tablets, a generic medication from Lupin Pharmaceuticals, Inc., have been made available in the US for the treatment of kidney transplant recipients who are at risk of organ rejection.

· March 2020: The generic version of the US treatment for schizophrenia known as Geodon (Ziprasidone Mesylate) injection has been released, according to Dr. Reddy's Laboratories Ltd.

· February 2020: The generic version of Vimovo (naproxen and esomeprazole magnesium), a medication used to treat inflammation in the United States, has been released, according to Dr. Reddy's Laboratories Ltd.

Segmentation of the Global Prescription Drugs Market