Biologics Market Size

Biologics Market Analysis

The Biologics Market size is estimated at USD 429.5 billion in 2024, and is expected to reach USD 601.26 billion by 2029, growing at a CAGR of 6.96% during the forecast period (2024-2029).

The COVID-19 pandemic had a significant impact on the market. There was a huge demand for biologics during the pandemic, which contributed largely to the growth of the market. For instance, in May 2020, the National Research Council of Canada and China-based CanSino Biologics collaborated on the clinical development of a COVID-19 vaccine in Canada. The extensive research and development activities that took place for the treatment of COVID-19 contributed significantly to the biologics market growth during the pandemic. Although the pandemic is over, the demand for biologics is expected to grow in the coming years as its significance is increasing for various therapeutics.

The market is majorly driven by growing capital investment from key players, the rise in the burden of chronic diseases, the loss of patent exclusivity of the leading biologic drugs, and growing demand and higher acceptability for innovative therapies.

According to the WHO, non-communicable diseases (NCDs) cause 41 million deaths yearly, equivalent to 71% of the total death rate. More than 15 million people die each year from non-communicable diseases between the ages of 30 and 69. About 85% of these "premature" deaths occur in low- and middle-income countries. Also, 77% of all non-communicable disease casualties are in low- and middle-income countries. Cardiovascular diseases account for most non-communicable disease deaths annually (17.9 million), followed by cancer (9.3 million), respiratory diseases (4.1 million), and diabetes (1.5 million). The increasing cases of chronic diseases are expected to increase the demand for biologics further in treating chronic diseases.

The increasing investments have also contributed to the overall growth of the market. In January 2021, Biocon Ltd reported that the board of its subsidiary Biocon Biologics Ltd had approved a primary equity investment by ADQ, one of the largest holding companies in Abu Dhabi. As per the terms of the agreement, ADQ will invest INR 555 crore for a 1.80% minority stake in the biosimilar business, valuing Biocon Biologics at a post-money valuation of USD 4.17 billion. Such investments are expected to bolster the growth of the market over the coming years.

Additionally, the rising research and development activities in biologics support the market's growth. For instance, the TXBio Pilot Grant Program is a research initiative led by the University of Texas at Austin's College of Natural Sciences and Cockrell School of Engineering that focuses on the discovery, early development, and clinical translation of biological therapies developed across the university (UT Austin). TXBio (Texas Biologics) is funded by philanthropic gifts that are being used to improve the intellectual environment and infrastructure at UT Austin that is relevant to biologics discovery and translation.

Furthermore, biologic product launches by the key market players are anticipated to drive the market's growth. For instance, in October 2021, Cadila Pharmaceuticals (Cadila) launched two similar biologics in the Indian market, namely NuPTH, a teriparatide biologic, and Cadalimab, a similar biologic of the auto-immune treatment adalimumab. Additionally, in May 2021, Amgen reported that its partner AstraZeneca had submitted a Biologics License Application (BLA) to the US Food and Drug Administration (FDA) for tezepelumab, a potential first-in-class medicine for severe asthma.

Thus, the above-mentioned factors are anticipated to drive the growth of the market during the next five years. However, the stringent regulatory processes, high capital investment, and loss of patent exclusivity are likely to restrain the growth of the market.