Australia Pharmaceuticals Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Australia Pharmaceuticals Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Australian pharmaceuticals market is expected to witness a CAGR of 2.1% over the forecast period, 2022-2027.

Most pharmaceutical and biotechnological companies had shifted their focus toward R&D departments to identify new molecules or leads for the treatment of this disease, which is in the final phase of clinical trials. In January 2021, the Therapeutic Goods and Administration approved the COVID-19 vaccine developed by Pfizer and BioNTech. In addition to this, the Australian government has gone under nearly four agreements where it has invested around AUD 3.3 billion to support the supply of vaccines in the country. Furthermore, the country invested around AUD 363 million in research and development activities related to the prevention and treatment of COVID-19. Such developments are further expected to accelerate market growth.

In recent times, countries have faced a huge threat of COVID-19. As per the World Health Organization (WHO), coronavirus disease is an infectious disease, and most people infected with the COVID-19 virus will experience mild to moderate respiratory illness. The Australian Government has convened a large group of clinical experts to form the National COVID-19 Clinical Evidence Taskforce. The role of the Taskforce is to create evidence-based Australian guidelines for the clinical care of people with COVID-19. The Therapeutic Goods Administration (TGA) has approved Tixagevimab and cilgavimab (Evusheld), Sotrovimab (Xevudy), and Remdesivir (Veklury) for COVID-19 treatment. With the rising cases of COVID-19, the demand for these therapeutics is also expected to increase, which will positively impact the market studied.

The major factors likely to drive the market growth during the forecast period are the growing burden of chronic diseases and the rising geriatric population, along with the rising investments in research and development expenditure for novel therapeutics in Australia. According to GLOBOCAN, in 2020, nearly 200,021 new cases of cancer were diagnosed in Australia. This number is expected to increase by 284.785 by 2040. This expected increase in cancer cases in the country will boost the demand for novel therapeutics, thus propelling the market growth. Furthermore, the burden of diabetes has also increased in the country. As per the data of the International Diabetes Federation’s 2021 report, there were about 1.5 million people with diabetes in Australia in 2021 and their number is expected to increase to 1.9 million by 2045 thus, the demand for pharmaceuticals for diabetes treatment and management is expected to increase over the years in Australia which is expected to boost growth in the pharmaceuticals market in the country.

Furthermore, key strategies adopted by major market players, increasing investment, and rising research and development activities will also contribute to the market growth. For instance, in June 2022, Diabetes-focused biotech player Dimerix entered into a partnership agreement with the Australian Centre for Accelerating Diabetes Innovations (ACADI) to conduct a clinical trial of its oral medical product DMX-200 in diabetic kidney disease patients. Positive results from such studies will boost their demand hence, boosting the pharmaceutical manufacturing process, and thereby driving the market during the study period. Thus, the above-mentioned factors are expected to positively contribute to the market growth over the study period. However, stringent regulatory guidelines for product approvals are expected to hinder market growth.

Key Market TrendsThe Prescription Drugs Segment Holds the Largest Share and is Expected to do so in the Forecast Period

Prescription drugs are available with a valid prescription from a prescriber. These drugs are heavily regulated and require a visit to a doctor, a diagnosis, and monitoring by a doctor to ensure the medication is working and that it is working safely. These drugs are intended for use by one individual patient to treat a specific condition and when doctors write prescriptions, they take into consideration a lot of information about their patients, including their current condition, other medications they may be taking, their vital statistics, and drug allergies they may have. That’s why a prescription medication that is safe and effective for one person may be dangerous for another. According to the November 2021 report of the Australian Institute of Health and Welfare (AIHW), about 16% of the total Australian population were of age 65 years and more and their population is on the rise adding to that, the rising geriatric population is expected to fuel the market growth as they are more prone to various chronic diseases such as cancer, cardiovascular diseases, musculoskeletal diseases and other. The increasing burden of chronic diseases is one of the key factors fueling the demand for therapeutic drugs which will boost the market. In addition, the launch of new drugs in the country requiring a doctor's prescription is expected to positively contribute to the segment growth. For instance, in January 2022, Australia’s drug regulator approved two prescription drugs for the treatment of COVID-19, Lagevrio by Merck and Paxlovid from Pfizer.

Moreover, technological advancements in the segment with the purpose to ease the prescription process will also drive the market. For instance, in February 2022, the Australian Capital Territory Government launched Canberra Script, a real-time prescription monitoring system to enable medical professionals to assess patients’ drug history before prescribing and dispensing some medications. It is being implemented to help address the increasing harms caused by some prescription medications, particularly opioids. Therefore, due to the aforementioned factors, the prescription drugs segment is expected to have a significant market share in the pharmaceutical market in Australia over the forecast period.

Competitive Landscape

The Australian pharmaceuticals market is highly competitive and consists of several major players. In terms of market share, a few of the major players are currently dominating the market. Some prominent players are vigorously making acquisitions and joint ventures with other companies to consolidate their market positions in the country. Some of the key companies currently dominating the market are Abbvie Inc., Amgen Inc., Pfizer Inc., AstraZeneca, and Eli Lilly and Company.

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