Red Biotechnology Market: Competitors’ Concentration on Cancer Therapeutics Research to Underpin Growth
Ever since the era of biotechnology began, with the development of recombinant DNA (rDNA) techniques, countless experiments and research regarding the implication of biotechnology to boost health continue to spawn. The advancement of biotechnology has opened new doors to designing novel therapeutic drugs for sophisticatedly fighting diseases.
Rapid advancements in stem cell research emphasize using a patient’s own cells to design highly personalized therapeutic alternatives. Similarly, genetic engineering technology encompasses editing the genetic composition of patients to encounter specific points of interest. Several measures are being taken to explore and incorporate biotechnology into the creation of personalized medical care. The application of biotechnology towards personalized medical treatments is likely to open several opportunities for red biotechnology market competitors. Although red biotechnology sustains on an upward growth trajectory in wake of its consist contribution in bettering healthcare, it is imperiled to potential setbacks that cannot be denied. The influence of regional governance on the pricing of medication brings along an undermining aspect, as growing innovations need to be remunerated.
The new study by TMR reveals key insights into the red biotechnology landscape, allowing report audiences to gain a holistic market overview. According to this TMR study, sales revenues from the red biotechnology market valued at US$ 314.2 billion in 2018. The increasing prevalence of chronic diseases, rapid expansion of the biopharmaceutical industry, and increased global expenditure on the healthcare industry are likely to uphold the growth of the red biotechnology market. Moreover, the growing awareness of chronic disease treatment and robust pipeline of new therapeutic molecules are expected to drive the global red biotechnology market.
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Notable Trends Shaping the Future of the Red Biotechnology Market
AI Ushers in the New Era of Biotechnology Research
The transforming utilization of artificial intelligence across a wide array of applications has not been unnoticed. Ahead of this, its use has gradually commenced revolutionizing research activities in the field of biotechnology, as it dramatically minimizes the cost and time involved in the development of life-saving drugs. Companies within the biotechnology space have gained a competitive edge with the implications of cloud-based technology and AI, and increased focus on R&D.
Significant Investments in the Healthcare Space
There is a continuously growing buoyancy for supporting industries in the biotech sector, including health service companies. Healthcare start-ups are shining brightly for investors, particularly in areas such as biotechnology. The healthcare industry, as a whole, has cited that dollars of investments and higher valuations are likely to stay consistent over the foreseeable future, giving an edge to research activities for biopharmaceutical production.
Strategic Collaborations Lay the Grounds for Success
Red biotechnology market players are relying on strategic mergers and acquisitions to strengthen their position in the market. As enhanced therapeutics play a major role in global disease mitigation, red biotechnology market players are emphasizing on strategic collaborations to enhance their level of expertise while bringing in innovative products. With collaboration agreements, red biotechnology market players are likely to gain major support for biopharmaceutical production, which is picking pace rapidly.
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Growing Demand for Therapeutics to Stir New Possibilities
The growing rate of chronic diseases is compelling researchers to develop advanced drugs and therapeutics that are capable of battling chronic and progressive diseases. On account of continuous developments in therapeutics for an array of diseases, and perpetual efforts towards effective R&D for drug development, product approvals by international regulatory bodies are gaining significant traction, thereby boosting developments in the red biotechnology market.
Key Success Strategies for Red Biotechnology Competitors
Strengthen Partnership and Distribution Agreements in Developing Countries
Global red biotechnology market players are emphasizing on developing countries, particularly in the Asia Pacific region. With major initiatives taken in response to the growing drug and biologics demand, and growing patient population in this region, global market players concentrate on strengthening distribution and partnership agreements in developing countries to leverage major demand for biopharmaceuticals and biosimilars.
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Expand Global Oncology Portfolio
Growing incidences of cancer across the globe have spawn major developments in cancer therapeutics, resulting in increasing investments in cancer research and drug development. Red biotechnology market competitors have recognized the importance of cancer therapeutics, directing major focus towards oncology portfolio expansion.
Greater Investment in R&D to Develop Novel Biopharmaceuticals
Biopharmaceuticals production continues to be the most sought-after application of red biotechnology on account of the fast-growing demand for these drugs that target disease pathways, and provide superior efficacy and safety. Their ability to treat previously untreatable diseases have made biologics widely accepted among end users, driving the demand for hefty investment in biopharmaceutical R&D.
Boost Market Presence in the U.S.
There is a major concentration of entrepreneurialism and research in U.S. biotechnology companies, with a biotechnology cluster based in the country. Higher rate of acceptance of new biopharmaceutical drugs, coupled with massive product launches in North America, is attributed to the dominance of the region, wherein, the U.S. is likely to thrive as a leader in the biotechnology space. A large number of mature biotechnology companies and pharmaceutical manufacturers located in the U.S. are attracting red biotechnology market contributors in a bid to expand their presence in the country.
Innovative Product Development and Clinical Trials
Companies operating in the red biotechnology market continue to engage in the development of innovative products and invest in associated clinical trials to gain regulatory backing. As R&D efforts for producing advanced disease therapeutics continues to flourish, red biotechnology innovations remain a vital profit-gaining strategy for competitors.
Leading players in global red biotechnology market, including
- F. Hoffmann-La Roche
- Amgen Inc.
- Gilead Sciences Inc.
- Pfizer Inc.
accounted for nearly half of the market share in 2018. Expansion strategies such as business acquisitions remain a vital tactic adopted by competitors in the red biotechnology market. Companies are entering into strategic collaborations with other biotechnology firms located in lucrative geographies, in a bid to expand their consumer base. Apart from this, innovative product launches allow red biotechnology market players to strengthen their market position, with focus centered on greater R&D activities. Considering the global inclination towards biosimilars that meet the consumer requirements for both, efficacy and cost-effectiveness, notable developments related to biosimilars remain a focal point for competitors.
Key developments carried out by leading red biotechnology market players:
- In June 2019, Amgen and Allergan plc announced that the US FDA granted approval for KANJINTI for all approved indications of the reference product, and Herceptin for treating HER2-overexpressing metastatic gastric or gastroesophageal junction adenocarcinoma and HER2-overexpressing adjuvant and metastatic breast cancer.
- Biogen Inc. recently announced the presentation of new data from the company’s biosimilar anti-TNF portfolio, which includes BENEPALI, FLIXABI, and IMRALDI. In Europe, 145,000 patients have been treated with a Biogen biosimilar, and the company estimates the uptake of its biosimilars to make nearly 2 billion euros in healthcare cost savings in 2019.
- CSL Limited recently highlighted developments in cell-based vaccine technology at an Australian Research and Development briefing. Real-world data and emerging evidences indicate that, cell-based influenza vaccines may provide better influenza-related outcomes in comparison with the standard egg-based vaccine options.
TMR analysts have a positive outlook about the red biotechnology market. As biotechnology continues to expand, increasing investments from global manufacturers will shape the future of the red biotechnology market. Staying in compliance with standardized regulations by regulatory authorities for biotechnology and pharmaceutical companies is cited as a vital milestone for business growth. Although the increasing prevalence of cancer provides a wider scope for red biotechnology market players, the expensive equipment and technology associated with cancer therapeutics is likely to place financial burdens on patients, in turn, impeding the expansion of the red biotechnology market. North America maintains a leading position in the red biotechnology market, currently. However, the surging demand for high-quality and cost-effective drugs across Asian economies is garnering the attention of red biotechnology market competitors. Biopharmaceutical industry behemoths in developed countries are focusing on establishing their research facilities in newer geographies, such as the Asian countries of India and South Korea, to expand their production capabilities. These scenarios showcase the growth potential held by this region. New entrants should consider Asia Pacific countries when strategizing their future investments.
- The global red biotechnology market was valued at US$ 314.2 Bn in 2018, and is expected to reach a value of more than US$ 512 Bn by 2027, expanding at a compound annual growth rate (CAGR) of nearly 6% from 2019 to 2027.
- The global red biotechnology market is expanding due to the increasing patient population, owing to the rising incidences and prevalence of chronic and rare diseases, along with increasing drug approvals for the effective management of diseases.
- The implementation of biotechnology in the field of medicine is known as red biotechnology.
- Red biotechnology is the branch of biotechnology that involves the use of bio-pharmaceuticals, gene therapy, pharmacogenomics, and genetic testing. Red biotechnology is utilized for the development of biopharmaceuticals that are employed in the treatment of chronic and rare diseases.
Global Red Biotechnology Market: Drivers and Restraints
- The global red biotechnology market is anticipated to expand, owing to the increasing patient population, surging research & development for drug discovery and new product approvals, and increasing government investments in the development of the biopharmaceutical industry in developing countries.
- For instance, according to the India Brand Equity Foundation, the biotechnology industry in India, consisting of bio-pharmaceuticals, bio-services, bio-agriculture, bio-industry and bioinformatics, is anticipated to expand at an average growth rate of 30%, to reach a market value of US$ 100 Bn by 2025.
- Rise in clinical trials for drug development and an increase in the demand for biosimilars are key factors expected to drive the global red biotechnology market in the near future.
- However, high failure rate of late stage drug products in clinical trials and high cost of manufacturing are major factors restraining the red biotechnology market. Significantly large investments are required for the research and development of therapeutics, which leads to concerns regarding funds, resulting in the higher prices of therapeutics, thus, hindering the penetration of therapeutics in developing economies that offer significant opportunities.
Global Red Biotechnology Market: Segmentation
- The global red biotechnology market has been segmented based on application, end user, and region. In terms of application, the global red biotechnology market has been classified into biopharmaceutical production, gene therapy, pharmacogenomics, and genetic testing.
- The biopharmaceutical production and gene therapy segments are estimated to hold prominent shares of the global red biotechnology market, in terms of revenue, during the forecast period.
- Furthermore, increasing research & development, new product approvals for the treatment of chronic and rare genetic disorders, along with the presence of a robust pipeline of drug products in early and late phases of clinical trials are likely to further boost these segments in the red biotechnology market.
- For instance, in 2019, FDA approved CELGENE CORPORATION REVLIMID in combination with a rituximab product for the treatment of patients who were previously treated for follicular lymphoma.
- Based on end user, the global red biotechnology market has been further divided into biopharmaceutical industry, CMOs & CROs, research institutes, and others.
- The biopharmaceutical industry and CMOs & CROs segments are expected to hold substantial shares of the global red biotechnology market, in terms of revenue, during the forecast period. Expansion of these segments in the red biotechnology market is likely due to an increase in the number of clinical trials and rise in adoption of expansion strategies by manufacturers in developing economies to reduce the cost of manufacturing and improve their position in the market during the forecast period.
Global Red Biotechnology Market: Regional Segmentation
- In terms of region, the global red biotechnology market has been segmented into North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.
- North America
- North America accounted for a major share of the global red biotechnology market in 2018. The region is expected to maintain its dominance in the global red biotechnology market during the forecast period.
- Higher rate of adoption of new therapeutics and diagnostics coupled with the rising demand for efficient drug products is anticipated to propel the red biotechnology market in North America. The presence of well-established and leading players with strong product offerings in the U.S. is anticipated to fuel the global red biotechnology market during the forecast period.
- The global red biotechnology market in Europe is anticipated to expand at a considerable growth rate in the near future, owing to increasing product approvals, rising mergers & acquisitions, increasing prevalence of genetic disorders, and surging funding for research & development.
- The red biotechnology market in the Germany is anticipated to expand at a high CAGR during the forecast period, due to an increase in the number of small- and medium-sized companies in the country. According to Germany Trade & Invest reports, approximately 300 small- and mid-sized biopharmaceutical manufacturers were said to be based in Germany between 2016 and 2018.
- Asia Pacific
- The red biotechnology market in Asia Pacific is likely to expand at a significant CAGR during the forecast period. Increasing product approvals in the region from respective regional authorities and mergers & acquisitions are anticipated to propel the red biotechnology market during the forecast period. For instance, on May 2019, Takeda Pharmaceutical Company announced the approval of Entyvio by the Ministry of Health, Labour and Welfare in Japan for the treatment of adult patients with moderately to severely active Crohn’s disease.
Global Red Biotechnology Market: Key Players
- Key players operating in the global red biotechnology market include Pfizer, Inc., Biogen Inc., Amgen Inc., AstraZeneca Plc., Gilead Sciences, Inc., CELGENE CORPORATION, F. Hoffmann-La Roche, Ltd., Merck KGaA, Regeneron Pharmaceuticals, Inc., and Takeda Pharmaceutical Company Limited.
Players operating in the red biotechnology market are increasing their focus on expansion of geographic presence through strategic mergers & acquisitions, partnerships, and product launches in different regions and countries, thereby consolidating their position in the red biotechnology market. For instance, in December 2018, Gilead Sciences, Inc. received approval for Harvoni from China’s National Medical Products Administration. The drug is used for the treatment of Chronic Hepatitis C Virus Genotype 1-6.
The recently published TMR study on the red biotechnology market provides the readers with a holistic market overview, through an extensive analysis of the market. The TMR report analyzes the market with regards to the historical and current data to provide a forecast for the period of 2019–2027. Actionable insights and findings pertaining to the red biotechnology market help report readers take major business decisions that support their long-term business growth.
The TMR study includes the compilation of the assessment of significant market dynamics such as key industry trends and major developments carried out by leading players, along with a detailed competitive assessment. The TMR study is divided into key sections to provide readers with an individual understanding of the various aspects of the red biotechnology market.
Key Questions Answered in the Report on the Red Biotechnology Market
- What is the revenue generated by the red biotechnology market in terms of the application across various geographical regions?
- Which industry trends are expected to have major influence on the red biotechnology market?
- What are the key developments carried out by leading red biotechnology market competitors?
- Which regions are likely to showcase major growth opportunities for red biotechnology market players?
- Which end user is likely to contribute a major share to the global revenue of the red biotechnology market?
The report on the red biotechnology market begins with a preface and brief market overview that includes the definition and scope of the market. Along with this, market segmentation, key research objectives, and research highlights have also been included in this section. Furthermore, the executive summary highlights the key aspects of the market in a concise fashion. This section helps readers in understanding the key aspects of the market in a brief manner. The next chapter is the red biotechnology market overview, which offers the market outlook at a glance, making it easier for readers to understand the avenues of the red biotechnology market. Apart from this, key red biotechnology market dynamics are also discussed in the report, highlighting the growth drivers, strong industry trends, market challenges, and future opportunities.
This section of the red biotechnology market study offers an in-depth segmentation analysis of the market, where the market is segmented on the basis of application, end user, and region. The segmentation analysis of the red biotechnology market offers a projection of year-on-year growth along with the basis point share analysis to help readers better understand the market segments. In addition, the market attractiveness analysis included in the chapter allow readers to gain a complete market understanding of the key segments in the red biotechnology market.
This section included in the TMR study on red biotechnology market provides an analysis of the geographical landscape of the market. The regional analysis of the red biotechnology market allows new market entrants and established companies to evaluate the performance of the red biotechnology market in key regions. The bifurcated individual region-level and country-level regional assessments of the red biotechnology market backed by a year-on-year growth prediction helps readers in tracing the key regional opportunities, aiding them in taking key business decisions.
The red biotechnology market report concludes with an in-depth evaluation of the competition in the market. This section highlights the nature of the red biotechnology market, while providing a thorough understanding of the market competition. The key growth strategies implemented by these companies and the regions across which the red biotechnology market is extended have also elaborated in the report. The section commences with a unique competitive dashboard that offers a brief overview of the activities of key red biotechnology market players. Additionally, the competitive structure and key developments made by prominent players in the red biotechnology market are also discussed in the study.
The TMR study on the red biotechnology market is based on a detailed assessments of the market, with the help of comprehensive research, including both, primary and secondary research. Detailed evaluation of the competition is also included in the study. An assessment of the historical and current market of red biotechnology with focus on key market segments and major regions, along with other qualitative inputs, help the analysts arrive at significant predictions for the red biotechnology market. Readers can access the red biotechnology market report to gain a forecasted market assessment for the period of 2019 to 2027.
Red Biotechnology Market: Taxonomy
CMOs & CROs
Middle East & Africa