The Global Hepatitis Market is Forecast to Show High Growth

Monday 20 February 2012, Amsterdam

The report analyzes the hepatitis markets in the US, the top five countries in Europe (the UK, Germany, France, Italy and Spain) and Japan. Treatment usage patterns, sales, prices and volumes are forecast until 2017 for the key geographies as well as the leading therapeutic segments. The report also provides competitive benchmarking for the leading companies and analyzes the mergers, acquisitions and licensing agreements that have shaped the global markets.

The Global Hepatitis Market is Forecast to Show High Growth

The global hepatitis therapeutics and vaccines market generated approximately $4.7 billion in 2010. The market is anticipated to reach revenues of approximately $8.6 billion by 2017, growing at a Compound Annual Growth Rate of 9% between 2010 and 2017. From 2002 to 2010, the market grew at a CAGR of 3.8%.

See figure: Hepatitis Therapeutics and Vaccines Market, Global, Revenues ($m), 2002-2017

The hepatitis C market is expected to grow at a high rate during the forecast period whereas the hepatitis B market will witness low growth.

The target patient base of the hepatitis market includes newly infected or diagnosed hepatitis patients, non-responders and patients who have discontinued treatment. As a result, there is a huge unmet need in the market. The high cost of therapy has also proved a major concern.

The current hepatitis C pipeline does offer some promising novel products, and as a result the overall growth of the global hepatitis market is expected to show a moderate increase in the future.

The global hepatitis vaccines market is expected to increase by 2017. It is expected to grow at a higher rate between 2010 and 2017 than between 2002 and 2010. This can be primarily attributed to the introduction of novel vaccines in the market, such as Heplisav and spi-VEC among others

Hepatitis Pipeline Portfolio is Dominated by Late-Stage Pipeline Candidates

The current hepatitis pipeline contains 237 projects across the different developmental stages. Hepatitis B and C currently account for more than two-thirds of the total hepatitis market and are the key therapy areas of focus in the current pipeline, of which they account for approximately 98%. More than 50% of the projects for hepatitis B and hepatitis C are in the early stages of research, which suggests that the market can expect novel drugs in the future.

The hepatitis C therapeutics pipeline has four molecules in Phase III, and the introduction of novel therapies will be a driver for the market. Products such as boceprevir, zalbin, telaprevir and RG7128 are already in the clinical development stage or approved by FDA, and their launch will reinforce the market growth.

The hepatitis B pipeline has 10 molecules in Phase III but most are combination therapies. Phase II is also dominated by combination therapies. The pipeline for hepatitis B lacks novel drugs and is therefore weak. The pipeline portfolio for hepatitis A is also weak, with four programs in various developmental stages. The high growth of the hepatitis C therapeutics market during the forecast period will support the global hepatitis market as a whole.

Large Number of Strategic Consolidations will Support Market Growth

Between 2009 and mid-2011, the hepatitis sector witnessed numerous strategic consolidations which are expected to result in high growth in the near future. There have been increasing numbers of licensing agreements for drugs in the hepatitis C pipeline portfolio, primarily due to the market’s high growth potential. The hepatitis C market also has the highest number of molecules in the pipeline portfolio, indicating a strong future. This will facilitate more Mergers and Acquisitions (M&As) and licensing agreements.

A total of 17 major licensing deals took place between 2010 and mid-2011 in the hepatitis market, including in the field of hepatitis B and hepatitis C therapeutics. Hepatitis B therapeutics accounted for 61% of deals in licensing agreements. This is the main area of focus for companies active in the hepatitis therapeutics market due to the potential for growth. Approximately 39% of deals were for hepatitis C therapeutics.