The global prescription drugs market is expected to grow at a CAGR of around 8.9% from 2020 to 2027 and expected to reach the market value of around US$ 1,567.2 Bn by 2027.
Prescription drugs are often strong medication that is why it requires a prescription from the physician. When the medication is prescribed by a doctor, prescription medicines prove helpful in treating many illnesses.
Stringent regulation act positively on the global prescription drugs market
As per the reports revealed by the FOOD AND DRUG LAW INSTITUTE, in the US, the Federal Food, Drug, and Cosmetic Act (FDCA) and Title 21 of the Code of Federal Regulations Part 202 (21 CFR Part 202) primarily govern prescription drug advertising and promotion. Together, the FDCA and 21 CFR Part 202 regulate how pharmaceutical companies can promote prescription drug to both healthcare and professionals and consumers. One of the fundamental requirements of prescription drug promotion in the US is the requirement that companies promote only uses that are "on label" or consistent with the Food and Drug Administration (FDA) approved pharmaceutical ingredient (PI). The term "off label" generally refers to promotion of a product for uses that are inconsistent with the FDA-approved labeling or PI. This can relate to the promotion of uses, dosing/administration, or patient population that are not FDA approved. Apart from that, in Chile, prescription drug advertising and promotion is monitored and regulated by the Agencia Nacional de Medicamentos (ANAMED), also known as the National Drug Agency. ANAMED is a part of the Institute of Public Health (ISP) and is responsible for the control of pharmaceuticals, cosmetics, and medical devices, guaranteeing their quality, safety and effectiveness.
Generic drug: An alternative to prescription drug propel the growth of global prescription drug market
Generic drug have offered great relief from rising prescription drug cost. As per the statistics released by the Association for Accessible Medicines, in 2016, nearly 3.9 billion generic prescriptions were dispensed. Generics account for 89% of the prescription dispensed but only 26% of total drug costs specifically in the US. Additionally, 20.5% of brand name prescriptions are abandoned compared to 7.7% of generics. The general acceptance of generic substitution has increased the efficiency of the prescription drug market. Utility of generic drugs results in higher level of adherence and has decreased healthcare costs while improving outcomes. Generic drug use has increased while the share of the pharmaceutical spending attributed to generics has gone down. Nearly, 3.9 billion prescriptions dispensed in the US are for generics. The rate of generic prescribing for all prescription had reached almost 75% in 2009 that was up from 57% in 2004. In 2010 to 2014, a number of blockbuster drugs went off patent representing more than US$ 209 Bn in annual drug sales revealed by the OFFICE OF THE ASSISTANT SECRETARY FOR PLANNING AND EVALUATION (ASPE)
The prescription drug market is segmented based on product type, therapy, and distribution channel. By product type, the market is segmented as generics, orphan, and other prescription drugs. Based on therapy, the market is segmented as oncology, anti-diabetics, vaccines, sensory organs, immunosuppressants, anticoagulants, and others. By distribution channel, the market is segmented as hospital pharmacies, retail pharmacies & drug stores, and online pharmacies.
Based on product, generics dominate the overall prescription drugs market.
The significant difference between generic and branded prescription drugs is the cost of the product. Generics don’t incur that tremendous expense and are able to pass savings on to the patient. Also, affordability of generics is a key factor for increased patient compliance. The Federal Government is the nation's largest purchaser of generic drugs. In fact, without generics Medicaid and Medicare spending on prescription medicine would nearly double. According to the reports revealed by the Association for Accessible Medicines, Medicare savings from generics totaled US$ 77 Bn in 2016 with saving of US$ 1,883 per enrollee. Medicaid program savings from generics reached $37.9 billion, which translates to savings of $512 per enrollee. By therapy, oncology therapeutics dominates for the prescription drug market globally. The reports revealed by the US National Library of Medicine and National Institutes of Health reveals that 96% of the patients reported taking prescription medicines within three days prior to chemotherapy. Moreover, rising prevalence of cancer is one of the dominating factors responsible for the growth of global prescription drugs market.
North America is projected to hold dominating market share for the prescription drugs market. Stringent regulations on the promotion and advertising of prescription drug are one of the prominent factors that contribute to the growth of global prescription drug market. In the US, Office of Prescription Drug Promotion (OPDP), reviews promotional materials submitted at the time of initial dissemination on Form FDA 2253, as well as through routine surveillance and the Bad Ad Program. In 2016, OPDP issued a total of 11 letters, eight untitled letters and three warning letters. Of the 11 letters, four related to investigational new drugs that had not yet been approved by FDA. The volatile promotional materials at issue in four of these letters were detected via Form FDA 2253, while seven were captured through routine monitoring and surveillance. Another requirement of prescription drug promotion is that promotional materials must not be false or misleading. There are several ways that promotional materials can be deemed false or misleading. To avoid this all prescription drug promotional materials that include efficacy/benefit claims must provide fair balance between benefit information and information on risk associated with the product.
On the other hand, Asia-Pacific is projected to register reasonably high CAGR throughout the forecast period. Presence of prominent players, rising awareness of chronic disorders are the factors that contribute growth of global prescription drugs market. Europe holds second largest share for the prescription drugs market. New product launches of efficient prescription product coupled with orphan drugs and rising demand for advanced prescription product are the factors that contribute for the global growth of prescription drugs market.
The prominent players involve in the global prescription drugs market involve Novartis AG, Pfizer Inc., F.Hoffmann-La Roche Ltd, Sanofi, Johnson & Johnson Services, Inc., Merck & Co., Inc., Abbvie, Inc., AstraZeneca, and others
Market By Product Type
Market By Therapy
Market By Distribution Channel
Retail Pharmacies & Drug Stores
Market By Geography
• Rest of Europe
• South Korea
• Rest of Asia-Pacific
• Rest of Latin America
Middle East & Africa
• South Africa
• Rest of Middle East & Africa
Prescription drugs market is expected to reach a market value of around US$ 1,567.2 Bn by 2027.
The prescription drugs market is expected to grow at a CAGR of around 8.9% from 2020 to 2027.
Based on product, generics segment is the leading segment in the overall market.
Generics as an alternative to prescription drug are one of the prominent factors that drive the demand for prescription drugs market.
Novartis AG, Pfizer Inc., F.Hoffmann-La Roche Ltd, Sanofi, Johnson & Johnson Services, Inc., Merck & CO., Inc., Abbvie, Inc., Astrazeneca, and others.
North America is anticipated to grab the highest market share in the regional market
Asia Pacific is expected to be the fastest growing market in the forthcoming years