LONDON--(BUSINESS WIRE)--According to the latest research report released by Technavio, the global antibody drug conjugates market is expected to grow at a CAGR of over 41% until 2020.
This report titled ‘Global Antibody Drug Conjugates Market 2016-2020‘, provides an in-depth analysis of the market in terms of revenue and emerging trends. To calculate the market size, the report considers revenue generated from the sales of ADCs used to treat cancer.
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“Vendors are increasingly outsourcing parts of their R&D process, such as product characterization testing and toxicology testing, to contract research organizations. Similarly, individual vendors are increasingly outsourcing their manufacturing processes. This decreases the manufacturing cost of originators, and increases profit margins. It is estimated that close to 70%-80% of antibody conjugate drugs manufacturing is currently being outsourced, and this trend is expected to positively impact the market over the course of the forecast period,” said Barath Palada, one of Technavio’s lead industry analysts for cardiovascular and molecular disorders.
Some of the other driving forces behind the growth of the global antibody drug conjugates market are as follows:
- Robust late-stage pipeline
- Increase in demand for antibody conjugates
- Favorable reimbursement policies
Robust late-stage pipeline
There are many products in the late pipeline stage that are likely be launched during the forecast period. Some of these products include glembatumumab vedotin by Seattle Genetics, trastuzumab by Synthon Biopharmaceuticals, and SGN-35 by Takeda Pharmaceuticals. Some molecules are in phase I/II, preclinical, and discovery stages. ADCETRIS is currently under clinical trials for additional indications such as frontline mature T-cell lymphomas, B-cell lymphomas, and CD30-expressing conditions. Altogether, they form a strong pipeline for ADCs, and their approval in the forecast period is expected to propel market growth significantly.
Increase in demand for antibody conjugates
Antibody conjugates have a high affinity for specific disease cells and areas that need treatment. The use of antibody conjugates is expected to grow, and include therapies such as radio immunotherapy and antibody-directed enzyme prodrug therapy. A key advantage of using ADCs is that it brings together better characteristics of both antibodies and cytotoxic chemotherapy. This presents a huge opportunity in terms of targeted drug accumulation in tissues or tumor cells. There are only two approved products in the market, Adcetris and Kadcyla. Currently, over 100 ADCs are in the pipeline, providing significant opportunities for growth.
Many new entrants are expected to enter the market, and increase competition in the market. Rising use of antibodies in drug development is expected to further increase revenues of vendors in the global ADCs market, and contribute to its growth until 2020.
Favorable reimbursement policies
Reimbursement plans such as public reimbursement programs reduce the financial burden of treatment, and thereby benefit patients. The reimbursement status of drugs is dynamic in nature with inter-country variations. Factors such as lack of cost-effectiveness can impede reimbursement coverage. However, increased demand and high cost of cancer drugs are important reasons for these drugs to be included in reimbursement plans.
The Affordable Care Act (ACA) implemented by the government of the US makes premium-priced drugs for the treatment of diseases available to patients at affordable rates. Many vendors also offer patient assistance programs to make these expensive drugs available to all. For instance, Genentech has initiated reimbursement plans for Kadcyla, a target-specific drug, through Genentech Access Solutions. These favorable reimbursement policies will positively impact the global antibody conjugates drugs market until 2020.
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