Flooded by Generics ENT Disorders Therapeutics Market to Witness Meager Growth

Monday 20 February 2012, Amsterdam

the unmet needs, drivers and barriers that affect the global ENT disorders therapeutics market. The report analyzes the markets for ENT disorders in the US, the top five countries in Europe (the UK, Germany, France, Italy and Spain) and Japan. Treatment usage patterns, sales value and annual cost of therapy are forecast until 2017 for key geographies in the five leading therapeutic segments. Further, the report provides competitive benchmarking for the leading companies and analyzes the mergers and acquisitions (M&A) and licensing agreements that shape the global markets.

Flooded by Generics ENT Disorders Therapeutics Market to Witness Meager Growth

See figure: ENT Disorders Market, Global, Revenue Forecasts ($bn), 2002–2017

The ENT disorder therapeutics market is flooded with several classes of generic drugs. Generic drugs are medications sold under a generic name that are only legal when the branded counterpart’s patent expires or has no patent. They have the same formulation as the branded drugs and are launched to the market as and when the branded drug’s patent expires. Generic versions of anti-bacterials including Pfizer’s Zithromax (azithromycin), Abbott's Biaxin (clarithromycin), Johnson & Johnson’s Levaquin (levofloxacin) and Bayer's Avelox (moxifloxacin) have captured the ENT therapeutics market. These generic drugs provide stiff competition to branded drugs, leading to an overall reduction in the market price of both branded and generic drugs. They are cost-effective both to patients and insurance companies as they cost on average 16% less than the branded varieties. Developing and under developed nations prefer importing generics. As the branded drugs have no protection once their patents expire, the cost of the drug eventually falls due to the competition posed by generic manufacturers. The ENT diseases generics market is dominated by companies such as Teva Pharmaceuticals, Mylan, Ranbaxy, and Watson.

The global ENT disorders market was estimated to be worth $15.3 billion in 2010, having grown at a compound annual growth rate (CAGR) of 0.7% between 2002 and 2010. By 2017, the global ENT disorders market is forecast to reach $17.2 billion, indicating a CAGR of 1.6% between 2010 and 2017. The slow growth in the market is attributed to high rate of saturation and considerable generic penetration. The primary reason for the growth rate is the increasing prevalence of ENT disorders. Sinusitis is one of the most commonly reported diseases in the US. Rhinitis is another indication that is on the rise due to mounting environmental pollutants.

The current ENT disorders pipeline does not offer any major promising or novel products. Therefore, the global ENT disorders market is expected to witness marginal overall growth in the future.

Short Drug Lifecycles Due to Antibacterial Overuse Restraints Companies to Invest in ENT Disorders Market

While antibiotics have been a life saver in fighting against serious bacterial infections for more than four decades now, they have been excessively prescribed, especially to children. According to Centers for Disease Control estimates, approximately 235 million doses of antibiotics are administered annually. About 20-50% of these prescriptions are unnecessary. Unfortunately, this overuse of antibiotics can cause devastating health consequences to children. Over-reliance on antibiotics is considered to be the main cause for the antibiotic resistance in ENT disorders. According to The National Ambulatory Medical Care Survey (NAMCS), sinusitis is the fifth most common diagnosis for which an antibiotic is prescribed. The increasing pressure on clinicians to reduce antibiotic prescriptions for ENT disorders leaves a therapeutic vacuum.

Antibacterial overuse has also led to short antibacterial drug lifecycles which arises from antibacterial resistance. Short drug lifecycles significantly affect drug developers as they have limited time to recoup their R&D investments. Several major companies cut their development efforts in this market due to factor. On the other hand drug development is initiated by smaller companies in developing innovative drugs or formulations or taking up efforts aborted by the larger companies.

Weak Pipeline Dominated by ‘Me-Too’ Drugs Marks the ENT Disorders Market
 
The ENT disorder market drug pipeline is weak, with about 65 products in the various stages of clinical development. Of these, 30 molecules are in Phase III. The pipeline drugs are similar to the marketed drugs in terms of their target and drug delivery systems. The drugs are not expected to replace the revenue losses experienced due to the patent expiries of the blockbuster drugs such as Levaquin, Zithromax and Biaxin.

The pipeline for rhinitis dominates the market for ENT disorders, garnering a considerable share of 71% of the total market. The current ENT disorders pipeline contains 65 projects across five indications. Rhinitis accounts for more than two thirds of the total ENT disorders market and is the key therapy area of focus in the current pipeline.

The tonsillitis and otitis media markets are comparatively smaller. With fewer market opportunities available, pharmaceutical companies do not list these indications as their top priorities. Otitis media drugs occupy 15% of the pipeline, with just 10 projects. Tonsillitis accounts for only 5% of the ENT disorders pipeline.