Market Trends of Red Biotechnology Industry
The Biopharmaceutical Companies Segment is Expected to Hold a Significant Market Share Over the Forecast Period
Biopharmaceuticals are proteins, antibodies, DNA, RNA, or antisense oligonucleotides used for therapeutic or diagnostic purposes, and these products are produced by means other than direct extraction from a native (non-engineered) biological source. The biopharmaceutical companies segment is expected to witness tremendous growth during the forecast period owing to the increasing R&D activities related to biopharmaceutical drugs and medications.
There has been significant development in the field of medical biotechnology, including the development of gene-based therapies. For example, in May 2022, Novartis received the United States Food and Drug Administration approval for CAR-T cell therapy Kymriah (tisagenlecleucel) to treat adults with relapsed or refractory (r/r) follicular lymphoma (FL) following two or more lines of systemic therapy. Moreover, in March 2021, the United States Food and Drug Administration approved idecabtagene vicleucel (Product from Abecma, Bristol Myers Squibb) for the treatment of adult patients with relapsed or refractory multiple myeloma after four or more prior lines of therapy, including an immunomodulatory agent, a proteasome inhibitor, and an anti-CD38 monoclonal antibody. This is the first Food and Drug Administration-approved cell-based gene therapy for multiple myeloma.
According to the Cleveland Clinic Report 2021, genetic disorders may also cause rare diseases. This group of conditions affects around 200,000 people in the United States. Experts say there may be as many as 7,000 of these diseases. The increasing incidence and prevalence of chronic and rare diseases and the rapid expansion of the biopharmaceutical industry are the key driving factors for the growth of the biopharmaceutical companies segment.
Therefore, the biopharmaceutical companies segment is expected to witness significant growth over the forecast period due to the increasing number of genetic disorders and surging number of product launches by prominent players.
North America is Expected to Hold a Significant Share in the Market and it is Expected to do the Same in the Forecast Period
The geographical analysis of the Red Biotechnology market shows that North America holds a significant market share in the global market. This is due to the rising prevalence of chronic and rare diseases, growing R&D activities, and high technological advancements in this region.
For instance, according to the American Cancer Society update 2023, over 1.9 million new cancer cases are expected to be diagnosed in the United States in 2023. 88% of people diagnosed with cancer in the United States are 50 or older, and 57% are 65 or older. Thus, an increase in cancer cases coupled with an increase in the geriatric population is expected to drive market growth in the country. In addition, the growing spending by the government and market players for boosting research on genetic diseases significantly boosts market growth. For instance, according to the National Institute of Health's article updated in March 2023, the spending for gene therapy was USD 486 million in 2021 and USD 560 million in 2022. Also, as per the same source, the spending on genetics research was USD 11,010 million the previous year and USD 11,615 million in the current year. Similarly, as per the data published by the National Center for Health Statistics (NCHS) in March 2023, research investments in nucleic acid-based research are expected to increase in the coming years in the United States. The source stated that the research funding in Genetics would likely elevate from USD 1,615 million to USD 12,445 million by next year. The same source noted that the research investments in Genetic Testing are anticipated to increase from USD 214 million in the current year to USD 237 million by next year. Also, the research funding in gene therapy will rise from USD 516 million in the current year to USD 540 million by next year.
Thus, the rising prevalence of cancer and high spending on research and development in genetics and gene therapy is projected to accelerate the regional red biotechnology market growth during the forecast period.
