The patented drugs market was valued at $814.5 billion in 2022 and is estimated to reach $1,456.5 billion by 2032, exhibiting a CAGR of 6.0% from 2023 to 2032. Patented drugs are pharmaceutical products that have been granted legal protection through a patent by government authorities, such as U.S. Patent and Trademark Office (USPTO), Intellectual Property Office, Japan Patent Office, and others. A patent is a legal protection that gives the patent holder exclusive rights to manufacture, use, and sell the patented drug for 20 years from the filing date of the patent application. During this period, other companies are prohibited from producing or marketing the same drug without permission from the patent holder. Patented drugs are the result of significant research and development efforts, and patents serve as a mechanism to protect and incentivize innovation in the pharmaceutical industry.
The patented drugs market growth is driven by increase in the number of research activities for development of new drugs, advancement in biotechnology and 3D modeling, and rise in people suffering from chronic diseases. Researchers explore various disease mechanisms, molecular pathways, and drug targets to identify potential areas for therapeutic intervention. This creates opportunities for the development of new drugs which drives the growth of patented drugs market. Furthermore, the prevalence of chronic diseases, such as cardiovascular diseases, cancer, diabetes, respiratory disorders, and neurological conditions, has been steadily rising globally. For instance, in 2021 American Cancer Society (ACS), estimated that about 1.9 million new cancer cases were diagnosed in the U.S. The available patented drugs for cancer include Avastin, KYPROLIS, IBRANCE, and others. This rise in chronic diseases has led to a higher demand for effective treatments and management strategies, which in turn drives the growth of the patented drugs market.
In addition, the availability of robust regulatory authorities such as U.S. Food and Drug Administration (FDA) or the European Medicines Agency (EMA) determines the drug approval process and grant market exclusivity to pharmaceuticals. This exclusivity period provide advantages for pharmaceutical companies, enabling them to recover their investment and generate revenue from patented drugs. Furthermore, increase in number of patent application filing in 2022 further boost the growth of the patented drugs market. For instance, in 2022, European Patent Office (EPO), received a total of 193,460 applications. It was also reported that patent activity in pharmaceuticals increased by 1% as compared to 2021.
However, entry of generic versions of the drug at lower prices after patent expiration limit the growth of the patented drugs market. The availability of cheaper alternatives may impact the demand for patented drugs. Furthermore, high costs associated with new drug development is financially challenging for pharmaceutical companies and limit their ability to invest in innovation and develop new patented drugs thereby impacting the market growth. On the other hand, surge in technological advancements, such as precision medicine, genomics, proteomics, and targeted therapies, are revolutionizing drug discovery and development. These advancements enable the development of more effective and patented drugs during the forecast period.
The patented drugs market is segmented on the basis of dosage form, indication, distribution channel, and region. On the basis of dosage form, the market is classified into solid drug product, liquid drug product, and others. Others segments include semi-solid drug and gaseous drug. As per indication, the market is categorized into cardiovascular diseases, cancer, autoimmune diseases, and others. On the basis of distribution channel, the market is segmented into hospital pharmacies, drug stores and retail pharmacies, and online pharmacies. Region wise, the market is analyzed across North America (the U.S., Canada, and Mexico), Europe (Germany, France, the UK, Italy, Spain, and rest of Europe), Asia-Pacific (China, Japan, Australia, India, South Korea, and rest of Asia-Pacific), and LAMEA (Brazil, South Africa, Saudi Arabia, and rest of LAMEA).
Major key players that operate in the global patented drugs market are AbbVie Inc., Amgen Inc., Pfizer Inc., Novartis AG, AstraZeneca plc, Bayer AG, Johnson & Johnson, F. Hoffmann-La Roche AG, Astellas Pharma Inc., and Biogen. Key players operating in the market have adopted patent and patent extension as their key strategies to expand their market share and product portfolio.
The patented drugs market growth is driven by increase in the number of research activities for development of new drugs, advancement in biotechnology and 3D modeling, and rise in people suffering from chronic diseases. Researchers explore various disease mechanisms, molecular pathways, and drug targets to identify potential areas for therapeutic intervention. This creates opportunities for the development of new drugs which drives the growth of patented drugs market. Furthermore, the prevalence of chronic diseases, such as cardiovascular diseases, cancer, diabetes, respiratory disorders, and neurological conditions, has been steadily rising globally. For instance, in 2021 American Cancer Society (ACS), estimated that about 1.9 million new cancer cases were diagnosed in the U.S. The available patented drugs for cancer include Avastin, KYPROLIS, IBRANCE, and others. This rise in chronic diseases has led to a higher demand for effective treatments and management strategies, which in turn drives the growth of the patented drugs market.
In addition, the availability of robust regulatory authorities such as U.S. Food and Drug Administration (FDA) or the European Medicines Agency (EMA) determines the drug approval process and grant market exclusivity to pharmaceuticals. This exclusivity period provide advantages for pharmaceutical companies, enabling them to recover their investment and generate revenue from patented drugs. Furthermore, increase in number of patent application filing in 2022 further boost the growth of the patented drugs market. For instance, in 2022, European Patent Office (EPO), received a total of 193,460 applications. It was also reported that patent activity in pharmaceuticals increased by 1% as compared to 2021.
However, entry of generic versions of the drug at lower prices after patent expiration limit the growth of the patented drugs market. The availability of cheaper alternatives may impact the demand for patented drugs. Furthermore, high costs associated with new drug development is financially challenging for pharmaceutical companies and limit their ability to invest in innovation and develop new patented drugs thereby impacting the market growth. On the other hand, surge in technological advancements, such as precision medicine, genomics, proteomics, and targeted therapies, are revolutionizing drug discovery and development. These advancements enable the development of more effective and patented drugs during the forecast period.
The patented drugs market is segmented on the basis of dosage form, indication, distribution channel, and region. On the basis of dosage form, the market is classified into solid drug product, liquid drug product, and others. Others segments include semi-solid drug and gaseous drug. As per indication, the market is categorized into cardiovascular diseases, cancer, autoimmune diseases, and others. On the basis of distribution channel, the market is segmented into hospital pharmacies, drug stores and retail pharmacies, and online pharmacies. Region wise, the market is analyzed across North America (the U.S., Canada, and Mexico), Europe (Germany, France, the UK, Italy, Spain, and rest of Europe), Asia-Pacific (China, Japan, Australia, India, South Korea, and rest of Asia-Pacific), and LAMEA (Brazil, South Africa, Saudi Arabia, and rest of LAMEA).
Major key players that operate in the global patented drugs market are AbbVie Inc., Amgen Inc., Pfizer Inc., Novartis AG, AstraZeneca plc, Bayer AG, Johnson & Johnson, F. Hoffmann-La Roche AG, Astellas Pharma Inc., and Biogen. Key players operating in the market have adopted patent and patent extension as their key strategies to expand their market share and product portfolio.
Key Benefits For Stakeholders
- This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the patented drugs market analysis from 2022 to 2032 to identify the prevailing patented drugs market opportunities.
- The market research is offered along with information related to key drivers, restraints, and opportunities.
- Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
- In-depth analysis of the patented drugs market segmentation assists to determine the prevailing market opportunities.
- Major countries in each region are mapped according to their revenue contribution to the global market.
- Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
- The report includes the analysis of the regional as well as global patented drugs market trends, key players, market segments, application areas, and market growth strategies.
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Key Market Segments
By Distribution Channel
- Hospital Pharmacies
- Drug Store and Retail Pharmacies
- Online Pharmacies
By Dosage Form
- Solid Drug Product
- Liquid Drug Product
- Others
By Indication
- Cardiovascular Diseases
- Cancer
- Autoimmune Diseases
- Others
By Region
- North America
- U.S.
- Canada
- Mexico
- Europe
- Germany
- France
- UK
- Italy
- Spain
- Rest of Europe
- Asia-Pacific
- Japan
- China
- India
- Australia
- South Korea
- Rest of Asia-Pacific
- LAMEA
- Brazil
- Saudi Arabia
- South Africa
- Rest of LAMEA
Key Market Players
- Amgen Inc.
- Pfizer Inc.
- AstraZeneca plc
- Bayer AG
- Biogen
- Johnson & Johnson
- Astellas Pharma Inc.
- F. Hoffmann-La Roche AG
- Novartis AG
- AbbVie Inc.
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Table of Contents
CHAPTER 1: INTRODUCTION
CHAPTER 2: EXECUTIVE SUMMARY
CHAPTER 3: MARKET OVERVIEW
CHAPTER 4: PATENTED DRUGS MARKET, BY DOSAGE FORM
CHAPTER 5: PATENTED DRUGS MARKET, BY INDICATION
CHAPTER 6: PATENTED DRUGS MARKET, BY DISTRIBUTION CHANNEL
CHAPTER 7: PATENTED DRUGS MARKET, BY REGION
CHAPTER 8: COMPETITIVE LANDSCAPE
CHAPTER 9: COMPANY PROFILES
List of Tables
List of Figures
Executive Summary
According to this report, the patented drugs market was valued at $814.5 billion in 2022, and is estimated to reach $1,456.5 billion by 2032, growing at a CAGR of 6% from 2023 to 2032.The patented drugs market is likely to experience a significant growth rate of 6.0% from 2023-2032 owing to increase in demand from pharmaceutical sector
A patent is a form of exclusive right granted for an invention. The property rights granted through the various patent organization across the globe such as U. S. Patent and Trademark Office (USPTO), and various others. The process of obtaining a patent occur at any stage during the development of a drug. The duration of patent can vary depending on the type of patent and the jurisdiction in which it is granted. Utility patents has a duration of 20 years from the filing date of patent application.
Key factors driving the growth of the patented drugs market include increase in research and development spending, surge in healthcare spending, and rise in development of novel medicines. Research and development investments fuel innovation by supporting extensive scientific research, exploratory studies, and preclinical investigations. These activities are aimed at identifying novel drug targets, understanding disease mechanisms, and discovering potential therapeutic lead molecules.
Furthermore, Increase in healthcare spending that allows for better access to healthcare services, including prescription medications. As more individuals have access to healthcare coverage and can afford necessary treatments, the demand for innovative and effective drugs increases. This increased patient access creates a higher market for patented drugs, thereby driving the market growth. For instance, American Medical Association (AMA), reported that U. S. health spending increased by 2.7% in 2021 to $4.3 trillion per capita. In addition, technological advancements such as genomics facilitate the development of novel drugs which further contribute towards the market growth.
The patented drugs market growth is driven by increase in sell of patented drugs such as Humira Keytruda, Comirnaty, and others. For instance, Humira is a patented drug that belongs to a class of medications called as tumor necrosis factor (TNF) inhibitors. It is primarily used to treat various autoimmune diseases, such as rheumatoid arthritis, psoriatic arthritis. Humira generated $21.23 billion revenue in 2022. Similarly, Keytruda is primarily used in the treatment of various types of cancer. It has generated $20.93 billion in 2022. Thus, revenue generated from increased sales fuels the growth of the patented drugs market by facilitating ongoing investments in new drug discovery and development.
The rise in chronic conditions such as cardiovascular diseases, diabetes, cancer, and respiratory disorders contributes to the growing demand for innovative medications. For instance, the increasing prevalence of diabetes worldwide has driven the development of patented drugs like insulin analogs and oral antidiabetic agents, which offer improved glucose control and management compared to older treatments. In addition, the prevalence of various types of cancer continues to rise globally. The development of targeted therapies and immunotherapies, such as monoclonal antibodies and immune checkpoint inhibitors, has revolutionized cancer treatment. These patented drugs provide more precise and personalized approaches to cancer therapy, improving outcomes for patients.
Rare diseases affect a small percentage of the population but collectively impact a significant number of individuals. For instance, according to AstraZeneca, about 400 million people around the world are affected by rare disease and half of the affected population are children. Therefore, development of patented drugs for rare diseases has gained attention due to the unmet medical needs of these patient populations. Examples include drugs like enzyme replacement therapies for lysosomal storage disorders or gene therapies for rare genetic disorders. This has increased the demand for patented drugs which, in turn, contribute toward the market growth. Moreover, strong intellectual property rights allows companies to recoup their investments in research and development and generate profits.
The patented drugs market is segmented on the basis of dosage form, indication, distribution channel, and region. On the basis of dosage form, the market is classified into oral drug product, liquid drug product, and others. On the basis of indication the market is segmented into cardiovascular diseases, cancer, autoimmune diseases, diabetes, and others. On the basis of distribution channel the market is segmented into hospital pharmacies, drug stores and retail pharmacies, and online pharmacies.
On the basis of region, the market is analyzed across North America (the U. S., Canada, and Mexico), Europe (Germany, France, UK, Italy, Spain, and Rest of Europe), Asia-Pacific (Japan, China, Australia, India, South Korea, and Rest of Asia-Pacific), and LAMEA (Brazil, South Africa, Saudi Arabia, and rest of LAMEA).
The key players profiled in the study include Pfizer Inc., AbbVie Inc., F. Hoffmann-La Roche Ltd., Johnson & Johnson, Amgen Inc., Novartis AG, Biogen, Bayer AG, AstraZeneca, and Astella Pharma.
Key Market Insights
By dosage form, the liquid drug product segment was the largest revenue contributor to the market in 2022 and is estimated to reach $845.34 billion by 2032.On the basis of indication, the cancer segment dominated the global market in 2022. However, others segment is expected to register fastest CAGR of 6.6% during the forecast period.
By distribution channel, the drug stores and retail pharmacies segment dominated the global market in 2022.
Based on region, North America garnered the largest revenue share in 2022. However Asia-Pacific is anticipated to grow at the highest CAGR of 7.0% during the forecast period.
Companies Mentioned
- Amgen Inc.
- Pfizer Inc.
- AstraZeneca plc
- Bayer AG
- Biogen
- Johnson & Johnson
- Astellas Pharma Inc.
- F. Hoffmann-La Roche AG
- Novartis AG
- AbbVie Inc.
Methodology
The analyst offers exhaustive research and analysis based on a wide variety of factual inputs, which largely include interviews with industry participants, reliable statistics, and regional intelligence. The in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. The primary research efforts include reaching out participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions.
They are also in professional corporate relations with various companies that allow them greater flexibility for reaching out to industry participants and commentators for interviews and discussions.
They also refer to a broad array of industry sources for their secondary research, which typically include; however, not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic news articles and other related releases for market evaluation
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecast
Furthermore, the accuracy of the data will be analyzed and validated by conducting additional primaries with various industry experts and KOLs. They also provide robust post-sales support to clients.
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