Prescription drugs Market

Prescription drugs Market

Global Prescription Drugs Market reached US$ YY million in 2022 and is expected to reach US$ YY million by 2030, growing with a CAGR of YY % during the forecast period 2024-2031.

Prescription drugs, also known as prescription medications or prescription pharmaceuticals, are medications that are legally available only with a healthcare professional's written authorization or prescription. These medications are distinct from over-the-counter (OTC) drugs, which can be purchased without a prescription.

Prescription medications are prescribed for specific medical conditions or symptoms. The healthcare provider determines the appropriate dosage and duration of use based on the patient's individual health status. Prescription drugs are fundamental in the treatment and management of a wide range of medical conditions. They play a crucial role in addressing acute illnesses, chronic diseases, infections, and various health disorders. Prescription drugs contribute to improving healthcare access worldwide. They are essential in addressing health disparities, providing affordable treatments, and supporting healthcare systems in various regions.

Market Dynamics: Drivers and Restraints

The rising prevalence of chronic diseases

The prevalence of chronic diseases, such as diabetes, cardiovascular diseases, respiratory disorders, and cancer, often requires long-term or lifelong medical management. This sustained need for treatment leads to a higher demand for prescription medications. Modern lifestyles, characterized by sedentary behavior, unhealthy dietary habits, and environmental factors, contribute to the increased prevalence of chronic diseases such as obesity, type 2 diabetes, and cardiovascular disorders.

Lifestyle-related conditions often require pharmaceutical interventions. For instance, according to WHO, stated that, about 422 million people worldwide have diabetes, the majority living in low-and middle-income countries, and 1.5 million deaths are directly attributed to diabetes each year. Both the number of cases and the prevalence of diabetes have been steadily increasing over the past few decades.

Additionally, cancer is a leading cause of death worldwide, accounting for nearly 10 million deaths in 2020, or nearly one in six deaths. The most common cancers are breast, lung, colon and rectum and prostate cancers. Around one-third of deaths from cancer are due to tobacco use, high body mass index, alcohol consumption, low fruit and vegetable intake, and lack of physical activity. Thus above factors helps to boost the market growth.

Market Dynamics: Restraint

Stringent regulatory requirements and lengthy approval processes

The regulatory approval process involves rigorous evaluation of a drug's safety, efficacy, and quality. The time required to conduct preclinical and clinical trials, submit applications, and undergo regulatory review can be lengthy. Delays in approval can significantly extend the time and increase the cost of bringing a drug to market, affecting the financial viability of drug development.

Meeting regulatory requirements involves conducting extensive and expensive clinical trials to demonstrate the safety and efficacy of a new drug. The costs associated with designing, implementing, and monitoring these trials contribute substantially to the overall expenses of drug development. Thus the strict regulations will restrain the market growth.

For instance, in the United States, the Federal Food, Drug, and Cosmetic Act (FDCA) and Title 21 of the Code of Federal Regulations Part 202 (21 CFR Part 202) primarily govern prescription drug advertising and promotion. Together, the FDCA and 21 CFR Part 202 regulate how pharmaceutical companies can promote prescription drugs to both health care professionals and consumers.

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Segment Analysis

The global prescription drugs market is segmented based on type, therapy area, route of administration, sales channel and region.

The generic drugs segment from the type segment accounted for approximately 39.7% of prescription drugs type share

Generic drugs contain the same active ingredients, in the very same strength, as brand-name drugs. When a medicine is first developed, the pharmaceutical company that discovers and markets it receives a patent on its new drug. The patent usually lasts for 20 years, to give the originating company a chance to recoup its research investment. After the patent expires, a generic version of the drug may become available.

Generics are marketed under the drug’s chemical, or ""generic,"" name and meet the same FDA quality and effectiveness standards as the original. Generics account for 90 percent of prescriptions dispensed in the U.S., but only 17.5 percent of the total drug costs. All of the thousands of generics available currently are rigorously tested by the FDA and must prove they are the same medicine with the same active ingredient, strength and dosage as their brand-name counterpart.

Generic drugs are generally more affordable than their brand-name counterparts. This cost-effectiveness makes healthcare more accessible and helps reduce overall healthcare expenditures for individuals and healthcare systems. Generic drugs play a crucial role in increasing patient access to essential medications. Once the patent for a brand-name drug expires, generic versions can enter the market, providing more options to patients and healthcare providers. Thus above factors drives the segment growth.

Geographical Analysis

North America accounted for approximately 31.3% of the market share in 2023

North America dominates the global prescription drugs market because of the increasing healthcare initiatives, the strong presence of major players in the market and the rise of the company’s product launches, increasing cases of diseases and rising number of research activities in this region.

For instance, on March 09, 2023, Teva Pharmaceuticals and NATCO Pharma Limited launched the generic version of Revlimid (lenalidomide capsules), in 2.5 mg, and 20 mg strengths, in the United States. The companies have launched four other strengths of the product in March 2022 in the US market. With the launch companies made available all the strengths of lenalidomide in the US market.

Additionally, according to CDC, estimated that, heart disease is the leading cause of death for men, women, and people of most racial and ethnic groups in the United States. One person dies every 33 seconds in the United States from cardiovascular disease. About 695,000 people in the United States died from heart disease in 2021—that’s 1 in every 5 deaths. Thus above factors accelerate the region growth.

COVID-19 Impact Analysis

Prescription medication misuse and underuse were raised as a result of the COVID-19 pandemic. Pharmaceutical supply networks were affected by underuse, and concerns about medicine shortages and hoarding resulted in multiple changes to legislation. The media paid close attention to the spread of false information and data regarding the possible negative effects of some drugs and the possibility that other people may treat COVID-19. As a result, people might have stopped taking heart-healthy drugs for unfounded reasons.

Azithromycin and hydroxychloroquine experienced a sharp increase in demand due to overuse after anecdotal evidence of their efficacy against COVID-19. Furthermore, the population's health may have suffered as a result of the COVID-19-related loss of employment, especially in light of the fact that the pandemic exposed and made disparities in healthcare severe.

Market Segmentation

By Type
• Branded
• Generic

By Therapy Area
• Oncology
• Immunology
• Ophthalmology
• Respiratory
• Gastroenterology
• Gynecology
• Others

By Route of Administration
• Oral
• Topical
• Parenteral
• Others

By Sales Channel
• Online
• Offline

By Region
• North America
U.S.
Canada
Mexico
• Europe
Germany
UK
France
Italy
Spain
Rest of Europe
• South America
Brazil
Argentina
Rest of South America
• Asia-Pacific
China
India
Japan
Australia
Rest of Asia-Pacific
• Middle East and Africa

Competitive Landscape

The major global players in the market include F. Hoffmann-La Roche Ltd, Mylan N.V., Teva Pharmaceutical Industries Ltd, Sanofi, Pfizer Inc, GlaxoSmithKline plc, Novartis AG, Merck & Co., Inc., Allergan, Dr. 'Reddy's Laboratories Ltd among others.

Key Developments
• In January 2023, Amazon launched a new prescription drug program giving subscribers as many medications as they need for a flat fee, the online retailer’s latest salvo in its bid to lure customers away from drug stores as big tech players push further into the healthcare sector.
• In June 2022, Pfizer Inc announced the submission of a New Drug Application (NDA) to the U.S. Food and Drug Administration (FDA) for approval of PAXLOVID for patients who are at high risk for progression to severe illness from COVID-19. PAXLOVID may only be prescribed for an individual patient by physicians, advanced practice registered nurses, and physician assistants that are licensed or authorized under state law to prescribe drugs in the therapeutic class to which PAXLOVID belongs.

Why Purchase the Report?
• To visualize the global prescription drugs market segmentation based on type, therapy area, route of administration, sales channel and region as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of prescription drugs market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The global prescription drugs market report would provide approximately 69 tables, 58 figures and 187 Pages.

Target Audience 2023
• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies