Acute bacterial skin and skin structure infections market is estimated to be valued at USD 3,842.5 Mn in 2024, and is expected to exhibit a CAGR of 5.8% over the forecast period (2024-2031). Global acute bacterial skin and skin structure infections market growth is driven by increasing resistance to conventional antibiotic treatments and growing demand for therapeutic alternatives. Furthermore, rising investment in research and development activities for developing novel drug molecules is also expected to drive the market growth.
Market Dynamics:
Global acute bacterial skin and skin structure infections market growth is primarily driven by increasing resistance to existing antibiotics used for treatment for acute bacterial skin and skin structure infections. Overexposure to antibiotics has led many bacterial strains developing resistance against front-line antibiotics. This has boosted research efforts focused on discovering new molecules that can overcome resistant strains. Growing patient demand for improved treatment outcomes and faster recovery boosts the development of advanced therapeutic alternatives.
Growing prevalence of skin diseases is driving the market growth
Rising prevalence of various skin diseases such as impetigo, cellulitis, boils, and others is one of the major factors driving the growth of global acute bacterial skin and skin structure infections market. According to a report by the American Academy of Dermatology, over 3.2 million cases of cellulitis and abscesses are reported each year in the U.S. The high prevalence of these skin infections boosts demand for effective treatment drugs and antibiotics. Moreover, changes in lifestyle and environmental conditions have further increased the risk of developing skin diseases. This growing burden of skin infections is anticipated to boost the adoption of acute bacterial skin and skin structure infections treatment over the forecast period.
Increasing healthcare expenditure by governments is fueling the market growth
Growing healthcare budgets of countries worldwide is another important driver of the market. Governments are investing heavily in public healthcare facilities and provision of subsidized treatment of common illnesses. For instance, according to the data by Centers for Medicare & Medicaid Services, the national healthcare expenditure of U.S. reached US$ 3.5 trillion in 2019. This rise in healthcare spending allows for more access to diagnosis and treatment options. It also encourages pharmaceutical research and development activities. Advanced treatment solutions are being developed due to increasing R&D investments by drug makers. Thus, growing healthcare affordability and accessibility in many nations drive the growth of global acute bacterial skin and skin structure infections treatment market.
Lack of novel drug development is hindering the market growth
One of the key challenges for market players is the lack of novel drug development. Most of the currently available antimicrobial medications are conventional generic drugs facing the threat of growing antimicrobial resistance. There is an urgent need for innovative treatment therapies with novel mechanisms of action. However, insufficient financial support and lack of incentives have slowed down the research pipeline. This poses a critical restraint on the antibacterial drug innovation essential to address the evolving microorganism virulence. Unless substantial investments are made towards new drug R&D, the risk of treatment failure and drug resistance may hamper the market growth.
Patent expiries of major drugs is limiting the market growth
Another significant hurdle in the industry's path is the looming patent cliff of many blockbuster drugs coming off exclusivity. For instance, GlaxoSmithKline's Tygacil patents expired in major global markets in 2016-2017. Pfizer lost patent protections for Zyvox in 2014. The entry of generic competition following patent expiries drastically affects the sales revenue and market share of incumbent companies. The associated price erosion shrinks profit margins. This poses severe limitation on the commercial success of established brands expected to face generic versions in the near future. Unless compensated by novel drug launches, the effect of expiring intellectual property can hamper the market growth and revenue.
Rise in healthcare out-of-pocket expenditure presents lucrative opportunities
One of the prominent trends transforming the healthcare industry worldwide includes the steady shift towards private financing of medical services as the out-of-pocket expenditure increases. According to the World Bank, out-of-pocket payment accounted for about 18% of the current health expenditure in low- and middle-income countries in 2018. This growing personal healthcare spending indicates the ability and willingness of patients to directly pay for therapies.
Key Development
- In July 2021, AbbVie, Inc., a biopharmaceutical company, announced that the U.S. Food and Drug Administration had approved DALVANCE (dalbavancin) for the treatment of acute bacterial skin and skin structure infections (ABSSSI) in pediatric patients. DALVANCE is the first single-dose option administered as a 30-minute intravenous (IV) infusion for the treatment of ABSSSI caused by designated susceptible Gram-positive bacteria in pediatric patients, including infections caused by methicillin-resistant Staphylococcus aureus (MRSA).
- In March 2021, Melinta Therapeutics LLC, a pharmaceutical company, announced that the U.S. Food and Drug Administration (FDA) had approved KIMYRSA (oritavancin) for the treatment of adult patients with acute bacterial skin and skin structure infections (ABSSSI) caused by susceptible isolates of designated Gram-positive microorganisms, including methicillin-resistant Staphylococcus aureus (MRSA).
Key Players: Fresenius SE & Co. KGaA, Pfizer, Inc., Amneal Pharmaceuticals LLC, Intas Pharmaceuticals Ltd., Cadila Healthcare Ltd., Glenmark Pharmaceuticals Ltd, GSK plc, Sun Pharmaceutical Industries Ltd., Aurobindo Pharma Ltd., AbbVie, Inc., Melinta Therapeutics, Inc., Accord Healthcare Ltd., Merck & Co., Inc., Teva Pharmaceutical Industries Ltd., Paratek Pharmaceuticals, Inc.