Biologics or biological products are medicines made from living organisms through highly complex manufacturing processes, and must be handled and administered under carefully monitored conditions. Biologics include a wide variety of products such as gene and cell therapies, therapeutic proteins, monoclonal antibodies, blood products, cytokines, growth factors, fusion proteins, insulin, interferon, and vaccines. Biologics are used to prevent, treat or cure various diseases including cancer, chronic kidney disease, diabetes, cystic fibrosis, and autoimmune disorders.
The market in the Middle East is expected to witness significant growth, owing to increasing healthcare expenditure. For instance, in 2018, the UAE healthcare expenditure was US$ 13.7 billion, which is expected to reach US$ 18.3 Bn by 2023.
The MENA biologics & biosimilars market is estimated to be valued at US$ 442.5 million in 2020 and is expected to exhibit a CAGR of 3.9% during the forecast period (2020-2027).
Figure 1: MENA Biologics & Biosimilars Market Share (%) Analysis, By Therapeutic Application, 2020
MENA Biologics & Biosimilars Market - Impact of Coronavirus (Covid-19) Pandemic
The COVID-19 pandemic and lockdowns in various countries across the globe have impacted the financial status of businesses across all sectors. The private healthcare sector is one such sector, which has been majorly impacted by the pandemic.
The lockdown in various countries due to the pandemic has placed an economic burden on the private healthcare sector. Healthcare providers are facing challenges with regards to declining outpatients’ visits, manpower, equipment, consumables, and other resources to ensure safety in treatment of patients with other diseases such as cardiovascular, diabetic and cancer.
Moreover, the coronavirus pandemic has negatively impacted development, production, and supply of drugs and affected businesses of various companies operating in the healthcare sector across the globe. The pandemic has led to closure of industrial establishments, except manufacturing of essential commodities, and disruption in supply chain of products.
Thus, COVID-19 pandemic has affected the economy in three main ways: 1) by directly affecting the production and demand, 2) by creating disruptions in distribution channels, and 3) through its financial impact on companies and financial markets.
Supply chain and manufacturing activities in India, China, the U.S., and other countries have been disrupted due to lockdowns, while countries such as Thailand, Indonesia, and Singapore are facing problems with regards to transportation of drugs and medical devices.
Thus, impact of the coronavirus (COVID-19) pandemic is expected to limit growth of the MENA biologics & biosimilars market during the forecast period.
|Base Year:||2019||Market Size in 2020:||US$ 442.5 Mn|
|Historical Data for:||2017 to 2019||Forecast Period:||2020 to 2027|
|Forecast Period 2020 to 2027 CAGR:||3.9%||2027 Value Projection:||US$ 623.7 Mn|
F. Hoffmann-la Roche Ag, Regeneron Pharmaceuticals, Inc., Pfizer, Inc., Amgen, Inc., Sanofi S.A., and Takeda Pharmaceutical Company Limited
|Restraints & Challenges:||
Rising strategic collaborations with leading pharmaceutical companies and research institutes for the development of novel biosimilar is driving growth of the MENA biologics & biosimilars market
Key players are involved in strategic collaborations with leading pharmaceutical companies and research institutes for the development of novel biosimilar. Such strategic collaborations are expected to create conducive environment for growth of the MENA biologics and biosimilar market in the near future.
For instance, in July 2018, Xbrane Biopharma AB (Xbrane) and STADA Arzneimittel AG (STADA) entered into a collaborative agreement for the development of Lucentis (ranibizumab) biosimilar to treat eye diseases, mainly neovascular age-related macular degeneration, diabetic-related macular edema, and retinal vein occlusion, covering Europe, the U.S., and some MENA and APAC markets.
In November 2017, Octapharma AG, in collaboration with Project SHARE, donated 30.5 million units of human cell-line derived recombinant factor VIII product, Nuwiq, for the treatment of patients with hemophilia A in emerging economies such as Bangladesh, Cambodia, Egypt, Ethiopia, Fiji, Kenya, Myanmar, Nepal, and others.
MENA Biologics & Biosimilars Market- Restraints
High cost of treatment for hemophilia is a major factor, which is expected to hinder the market growth during the forecast period. Hemophilia is associated with high aggregate costs and imposes a high financial burden on individuals and healthcare systems in emerging economies. Hemophilia is a chronic condition that requires lifelong treatment, with individual costs varying based on disease severity, complications, and treatment regimen.
For instance, according to a cohort study conducted by National Center for Biotechnology Information (NCBI) in 2015, hemophilia treatment is expensive, particularly for patients with severe hemophilia. According to the study, severe hemophilia is associated with greater annual costs in both types of hemophilia. For instance, according to the study in NCBI in 2015, the annual cost required for the treatment of hemophilia A is around US$ 84,766.9 and hemophilia B is around US$ 122,877. Patients with factor VIII inhibitors have costs 3.3 times higher than patients without factor VIII inhibitors. Thus, high cost of therapy is expected to hinder the market growth during the forecast period.
Figure 2: MENA Biologics & Biosimilars Market Value (US$ Mn) & Y-o-Y Growth (%), 2017-2027
MENA Biologics & Biosimilars Market- Competitive Landscape
Key players operating in the MENA biologics & biosimilars market include F. Hoffmann-la Roche Ag, Regeneron Pharmaceuticals, Inc., Pfizer, Inc., Amgen, Inc., Sanofi S.A., and Takeda Pharmaceutical Company Limited.
A biologic drug (biologics) is a product that is produced from living organisms or contains components of living organisms. New technologies for manufacturing of biologics, which hold potential for the MENA biologics & biosimilars market growth.
Biologics are widely used to prevent, treat, diagnose or cure a variety of diseases such as cancer, chronic kidney disease, autoimmune disorders, and infectious diseases.
Furthermore, Rapid reforms in the healthcare sector MENA region by government and multinational companies is expected to propel growth of the MENA biologics & biosimilars market. For Instance, In March 2020, The Ministry of Health (MOH) of Saudi Arabia signed a memorandum of understanding with Sanofi Saudi Arabia, to start localizing and transferring insulin industry technology locally in the Kingdom of Saudi Arabia and the possibility of external export to the GCC countries and the Middle East region
The MENA biologics & biosimilars market is expected to witness significant growth during the forecast period, owing to the increasing prevalence of hemophilia. According to the World Federation Hemophilia Global Survey, there was approximately 5,050 people with hemophilia (PWH) in Egypt in 2013.
According to the Annual Global Survey, around 418 people were suffering from hemophilia in Saudi Arabia in 2016.
Moreover, increasing number of novel technology launches is expected to drive growth of the market.
For instance, In July 2018, Xbrane Biopharma AB (Xbrane) and STADA Arzneimittel AG (STADA) entered into a collaborative agreement for the development of Lucentis (ranibizumab) biosimilar for the treatment of several eye diseases mainly neovascular age-related macular degeneration, diabetic-related macular edema, and retinal vein occlusion, covering Europe, the U..S and some MENA and APAC markets.
Key features of the study:
“*” marked represents similar segmentation in other categories in the respective section.
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