Worldwide Orphan Drug Market to Grow to $127 Billion by 2018
April 23, 2013, 9:00 a.m. ET.Worldwide Orphan Drug Market to Grow to $127 Billion by 2018
.The Wall Street Journal
LONDON & BOSTON--(BUSINESS WIRE)--April 23, 2013-- The worldwide orphan drug market is set to reach $127 billion by 2018, accounting for nearly 16 percent of total prescription drug sales, according to the new 2013 Orphan Drug Report from Evaluate. The first-edition report sheds light on the market dynamics of orphan drugs -- pharmaceutical products aimed at rare diseases or disorders -- projecting that sales will experience a compound annual growth rate of 7.4 percent between 2012 and 2018, nearly double that of the prescription drug market, excluding generics.
For pharmaceutical companies, the findings confirm hypotheses that orphan drugs offer a greater return on investment than non-orphan drugs. Orphan drugs that have been filed for regulatory review or are in phase III trials provide a 1.7 times greater return on investment than non-orphan drugs. Moreover, EvaluatePharma's analysis shows that phase III development costs for orphan drugs are half of those of non-orphan drugs.
"Pharma has traditionally been focused on developing drugs for large disease populations," said Anthony Raeside, Evaluate's Head of Research. "However, with R&D costs rising into the billions, pharma has shifted efforts to more niche indications which, as our analysis demonstrates, offer a greater return on investment."
Here's a look at some of the report's key findings:
-- In 2012, orphan drug sales increased 7.1 percent to $83 billion from the
previous year. That compares with a 2.1 percent decline in overall
prescription drug sales (excluding generics), which fell to $645 billion.