Biosimilar Market Expected to Grow to $92 Billion by 2031, Data Show
A report from SkyQuest Technology highlights the growth in the oncology and insulin spaces, indicating they will contribute to the most growth.
The global biosimilar market was approximately generating $27.3 billion in 2023, with this number projected to reach $92 billion by 2031, with a compound annual growth rate of 16.4% during this period, according to a report from SkyQuest Technology. The largest segment with the fastest growth rate is expected to be in the oncology space.1,2
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Biosimilars are drugs that have no clinically meaningful differences in safety and efficacy compared with the reference product. Biosimilar drugs are made from the same type of sources, administered in the same method, in the same strength, dose, and have the same potential benefits and adverse events of the reference product. The creation of biosimilars was intended to help reduce the cost of medication for patients by creating a more competitive marketplace; however, the cost of research and development has limited the approval and creation of biosimilars, particularly in the United States. Furthermore, the implementation of biosimilars has also been limited due to barriers that include prescriber knowledge, patient perception, and payor reimbursements.3
Although the economic barriers have been prominent in literature, there are little data that show how non-economic barriers affect the commercialization and uptake of the drugs. Another barrier, according to an article in Pharmacy Times, is the “interchangeability” designation has caused confusion among prescribers and the general public because the perception is that without the designation, biosimilars cannot be substituted for the reference product. However, the designation determines whether the reference product can be swapped out with a biosimilar without consulting a physician.4
In the report, investigators looked at oncology, inflammatory and autoimmune disorders, chronic disease, blood disorders, growth hormones deficiency, and infectious disease spaces. For drug type, they followed monoclonal antibodies, insulin, granulocyte colony-stimulating factor, erythropoietin, recombinant human growth hormone, etanercept, follitropin, teriparatide, interferons, and anticoagulants.1,2
The 2 most highlighted findings were the influence of the oncology space for biosimilar growth and expanding diabetic insulin biosimilars.1 For oncology, the increase of diagnoses in this space in recent years has led to more investment into cancer research and treatment, with oncology biosimilars expected to grow in frequency of use to treat oncology-related indications. Further, the biggest market growth factor would be the investments going into development of oncology biosimilars.1
For insulin, the investigators report that diabetes is considered one of the most prevalent diseases globally, which has increased research to improve management and cost of insulin and other diabetes-related medications. Biosimilars would provide an increase to accessibility for individuals, and the medication could likely see more reimbursements for insurance companies due to the low cost, investigators predict.1
The rise of autoimmune and inflammatory disorders also poses an opportunity for growth in the market, especially since the biologic therapies are expensive and limit access to patients who cannot afford the biologic. Chronic diseases are also projected to bolster the market of monoclonal antibodies due to the low toxicity and highly specific nature of the medications.1
