Significant opportunities are expected to open up for pharmaceutical companies in the biosimilar segment, with biological drugs with a market value of over $50 billion slated to shed their patent protection in the US alone in the next six years.
A bulk of these will loose the protection in 2013. Biological drugs worth about $20 billion, including those of Amgen, Eli Lily, Genzyme and Serono, will fall off the patent protection this year, according to a report by Grant Thronton that was released during the just concluded BioAsia event here.
Biosimilar can be a ‘copy of’ or ‘similar to’ the biological drug, whose patent has expired, but not exactly identical the biological drug. One of the key drivers promoting the development of biosimilars is that they are an affordable alternative to originator medicines.
The global market for biosimilars is estimated to grow to $3.7 billion by 2015, with the impending patent cliff being the key driver for development and collaboration activities, the Thronton report pointed out.
Alliances, collaborations
This is also likely to set off major alliances and collaborations in the coming years. There had already been 17 major alliances between companies across the world in 2010, 12 in 2011 and 15 last year.
“While 30 per cent of the alliances were structured as acquisitions, the rest were collaborative agreements,’’ it said.
Interestingly, 40 per cent of the deal activities originated in the US, followed by Europe and India with 18 per cent and 12 per cent.
The major players in India include Cipla, which aims at developing biosimilars for Roche’s Avastin, Ranbaxy, which is expected to launch three products by 2015 for cancer and Biocon with plans to develop Glargine for which patent expires next year.