Prescription Drugs Market - Forecasts from 2022 to 2027

The global prescription drug market is estimated to augment at a CAGR of 4.98% increasing from USD969.305 billion in 2020 to USD1,361.905 billion by the end of 2027.

Prescription drugs are more potent in comparison to over-the-counter (OTC) drugs. Hence, their inappropriate use may lead to serious side effects. These medicines are handed over to the customers on the basis of doctor's prescriptions only. One might have noticed on the doctor's prescription notepads and signs in most pharmacies, that the symbol Rx, is the symbol for medical prescription. Growing global pharmaceutical spending will have a significant impact on fueling the market growth during the forecast period. One of the main drivers is the high cost of speciality medicines and the growing use of medical treatments. The prevalence of rare disorders is further propelling the market demand during the forecast period. The increasing number of chronic diseases worldwide is further continuing to increase the sales of prescription drugs in the forecast period. The growing number of cancer incidences worldwide is driving the market growth during the forecast period. The novel coronavirus pandemic scenario has had a positive impact on fueling the market growth in 2020. It is, however, at a lower growth rate than the previous year. The market for prescription drugs will further proliferate with the research and development investments among companies for the manufacturing of innovative drugs. Hence, the presence of pipeline drugs indicates that a greater number of drugs are capable of gaining commercialization in the near future, further providing an opportunity for the market to thrive during the forecast period. Furthermore, the growing number of elderly individuals worldwide has significantly raised market growth prospects in the forecast period. The developed regions of the world, particularly, North America, are projected to hold a significant market share in the global prescription drug market. On the other hand, the Asia-Pacific region is regarded as one of the fastest-growing, owing to the prevalence of a large population base in need of treatment. In addition, significant investments in improving healthcare infrastructure with better health facilities are further providing an opportunity for the market to grow during the forecast period.

The market, on the basis of type, is categorized as generics, orphan drugs, and other prescription drugs. By application, the global prescription drug market is segregated into diabetes, oncology, cardiovascular diseases, autoimmune diseases, and others. By distribution channel, the market is segmented into hospital pharmacies, drug stores and retail pharmacies, and online pharmacies.

The use of generics as prescription medicines and companies offering generic drugs are further providing an impetus to propel the market growth in the forecast period. One of the leaders in generics, Teva Pharmaceuticals states that in the United States of America, the company is the pioneer in generic pharmaceuticals. In the US, one out of every nine drugs prescribed is filled by Teva products. In the United Kingdom, it is observed that one out of six individuals is prescribed Teva generics. Additionally, other companies manufacturing prescription medicines utilize Teva pharmaceutical's active pharma ingredients. One of the benefits provided by generic medicines includes that they are quite affordable for patients in comparison to branded drugs. It is noticed on a wide scale that generic medicines, on average, cost between 80 and 85% less than branded drugs. In the USA, generic medicines account for around 90% of the total prescribed medicines. It is estimated to hold approximately 78% of the market in Germany. The growing chronic diseases worldwide are propagating the market growth in the forecast period.

It has been observed on a wide scale that there is a significant rise in the global chronic disease burden. One of the major reasons includes growing urbanization and the adoption of unhealthy living conditions. Also, the growing geriatric population worldwide is contributing to the growth of age-associated diseases, further augmenting the chronic disease growth and further fueling the market growth in the forecast period. Diseases such as Alzheimer's disease, cardiovascular disease, obesity, and diabetes are some chronic diseases. The rising incidences of cancer are further providing an impetus, fueling the market growth in the forecast period. As per the World Health Organization, 2018, information, cancer is the second leading cause of death in the world. In 2018, it was responsible for 9.6 million deaths. Also, around one in six deaths in the world occurs due to cancer. The most common cancers include lung cancer, breast cancer, colorectal cancer, prostate cancer, skin cancer, and stomach cancer. The total number of new cases in 2018 has grown to 18.1 million.

According to the organization's global analysis, Europe accounted for 23.4% of the global total number of cancer cases in 2018. While it was responsible for 20.3% of all cancer deaths worldwide, The Americas accounted for 21% of global cancer incidence while accounting for 14.4% of global cancer mortality. . Asia accounted for 48.4% of global cancer incidences, while, it held a share of 57.3% in global cancer deaths. Africa held a share of 5.8% in the global cancer incident cases, while it accounted for 7.3% of the global cancer deaths.

The growing prevalence of cardiovascular diseases is further contributing to the sales of prescription drugs, fueling the market growth in the forecast period. As per the CDC, cardiovascular diseases, comprising disorders of the heart and blood vessels, are ranked as the number one cause of death and disability globally. The major risk factors for this disease include high blood pressure or hypertension, which are attributed to causing a predicted 10 million deaths globally every year. Several initiatives, such as the Global Hearts Initiative, are being taken for the improvement of the prevention and control of cardiovascular diseases worldwide. This is for the reduction of premature deaths occurring from heart diseases.

The advent of speciality drugs is predicted to enhance the sales of prescription drugs at a high CAGR during the forecast period.

Speciality medicines are prescription drugs that are either non-diabetic self-administered injectable drugs or medications that require special handling, administration, or monitoring. It is a high-cost medication. These medications are used for the treatment of patients suffering from complicated, rare, or ultra-rare disorders. These further require high-touch patient care and monitoring services, for example, while handling transplant and hepatitis cases. The prevalence of rare diseases is contributing to increasing the popularity of speciality medications, further raising the market growth prospects in the forecast period. As per the Orphanet database, it is estimated that there are more than 300 million individuals in the world who are known to be living with one or more than 6000 identified rare diseases. Orphanet is a platform providing information on rare diseases for the improvement of diagnosis, treatment, and care of patients suffering from rare diseases. It was established in France by the INSERM in 1997, an initiative that was supported by funding from the European Commission. Orphanet grew to a consortium of 40 countries within the European region and across the world. It is estimated that rare diseases affect only a handful of individuals worldwide, but when taken together, the total number of people affected by rare diseases is equal to the population of the third-largest country globally. These diseases, at present, are known to affect between 3.5% and 5.9% of the population in the world. Rare genetic diseases account for 72% of all cases, while others are caused by infections, allergies, or environmental factors, or are degenerative and proliferative. In the European region, the rare disease affects less than 1 in 2000 individuals.

Specialty medicines include bio-based drug products that are structurally similar to the compounds inside the human body. The shift in focus towards the development of new biological drugs is mainly attributed to the growing need for the development of targeted treatments, which were previously unavailable. This has further resulted in the development of personalized medicine while treating a disease. A biological drug is a large, complex molecule that is capable of interacting with a patient's biology. On the other hand, small molecule drugs work in the form of inhibitors that disrupt a process related to a particular disease. This is mainly due to the fact that these small molecules are capable of penetrating into the cells, and hence, with the potential of off-target interactions, there are side effects. While, a large molecule, a biological drug is designed in a manner so that it is capable of binding to specific targets, further targeting molecular processes in comparison to small molecule drugs. Thus, the development of biological drugs will further contribute to promoting market growth during the forecast period. As a result, such advancements have the potential to transform disease treatment.

Key Development:

• Lupin Pharmaceuticals Inc. has launched a new generic drug, Mycophenolic acid delayed-release tablets which are used to prevent organ rejection in kidney transplants in the United States.
• Dr Reddy's lab ltd. has announced the launch of the generic equivalent of Geodon injection. The drug is launched for the treatment of schizophrenia patients.

Covid-19 Impact:

Covid-19 pandemic has positively impacted the overall market growth owing to the increased approvals of speciality medications, increasing R&D investments by key players and growing demand for effective immunity-building drugs across the globe. COVID-19 increased the revenue generation opportunity for players in the global prescription drugs market. The companies across the globe are getting into collaborations and mergers with the various research institutes and manufacturers is another key factor which has contributed to the overall market growth in 2020. There was a high demand for various prescription drugs to fight against infectious diseases, diabetes, influenza etc. during and after the pandemic.

Segmentation:

By Type

• Generics
• Orphan Drugs

By Application

• Diabetics
• Oncology
• Cardiovascular Diseases
• Autoimmune Diseases

By Distribution Channel

• Hospital Pharmacy
• Drug Stores & Retail Pharmacy
• Online Pharmacy

By Geography

• North America
• USA
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Europe
• UK
• Germany
• France
• Middle East and Africa
• UAE
• Israel
• Saudi Arabia
• Asia Pacific
• Japan
• China
• India
• Australia