According to analysts at Vantage Market Research, the orphan drugs market is expected to reach USD 319.9 Billion by 2028, growing at a CAGR of 7.4% from 2021 to 2028. Demand has increased substantially for orphan drugs due to the surge in the occurrence of rare diseases. Furthermore, the increase in awareness with respect to rare diseases among the populace, rise in investment in R&D, and drug development is fuelling the market growth.
Orphan Drugs Preview key Finding
- The oncologic segment is projected to expand at the fastest CAGR exceeding 25% over the forecast period owing to the increasing surge in occurrence of rare diseases
- The orphan drugs market is expected to further expand as more and more individuals are being diagnosed with rare diseases. Rising healthcare spending and improving healthcare infrastructure have boosted the orphan drugs market.
- Asia Pacific is expected to expand at a CAGR of 9.2 from 2021 to 2028. This surge is attributed to the rising concern and number of increasing cases of rare diseases in developing economies such as China and India.
Some of the key players in the orphan drugs market are RegeneRX Biopharmaceuticals Inc., F.Hoffman-La Roche AG, Pfizer Inc., Shire PLC, AbbVie Inc., Alexion, Bayer, Celgene Corporation, Johnson & Johnson Services Inc., Sanofi, Novartis AG, Merck & Co. Inc., Amryt Pharma PLC, Bristol-Myers Squibb Company. among others. The market is comprised of a high degree of competition due to the presence of numerous key players. Manufacturers are focusing on opting for various inorganic growth strategies such as acquisitions, mergers, and geographical expansion to leverage their market share and gain a competitive advantage.
An orphan drug is a pharmaceutical agent developed to treat medical conditions which, because they are so rare, would not be profitable to produce without government assistance. The conditions are referred to as orphan diseases. Rising healthcare spending and improving healthcare infrastructure to better accommodate patients. The different indications for which orphan drugs are used include lymphoma, leukemia, cystic fibrosis, and others.
North America region is poised to record the highest CAGR, owing to the increasing number of patients or individual related various diseases. Pharmaceutical companies are keen on investing in R&D to develop medicines for rare diseases as it helps the company from a business perspective. The target market for such medicines will be much focused. As a result, companies won’t be able to recover their costs. Hence these drugs are called Orphan Drugs. However, the advent of domestic versions has brought down the prices, which is expected to drive the deployment.