Antibiotic is an antimicrobial agent that fights bacterial infections and also protozoan infections. They are also used to treat strep throat, infections of the urinary tract, infections of the sinus, pneumonia, infections of the skin, infections of the ears, and others. There are many ways to classify antibiotics, but the most common classification is based on their chemical structures, activity spectrum, and mode of action. Currently, there is a high demand for antibiotic class beta-lactam and beta-lactamase inhibitors among health care providers.
The global antibiotics market size was valued at USD 45,965 million in 2019 and is projected to grow at a CAGR of 4.2% during the forecast period, 2020–2029.
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The rise in infectious disease cases, along with imbalances in antibiotic demand and supply, is the key factor driving the market growth. Increasing efforts by primary market players to develop advanced products is also boosting the market growth. In March 2018, more than 35 innovative antibiotics molecules were investigated in the U.S. market, according to data published by the Pew Charitable Trust. Some of these are clinical trials in phase II and Phase III, which are expected to enter the market between 2020 and 2023.
Favorable federal legislation, including the Generating Antibiotics Incentives Now (GAIN) Act, is expected to accelerate the approval process. GAIN Act contains provisions that facilitate the development of antibiotic-resistant pathogens therapies. Antibiotics help in preventing the morbidity of HIV/AIDS, pneumonia, malaria, and Tuberculosis, and other infectious diseases. However, the introduction of new pathogens, such as the Zika and Ebola virus, SARS, Coronavirus, prompts antibiotic production and adoption.
The market participants are now commonly implementing strategic plans for collaborative development to divide the expenses. This, in effect, is supposed to result in a greater number of molecules development in the antibiotics market. Additionally, public-private partnerships, where funds and innovative R&D strategies are promoted to antibiotic manufacturers through public bodies, will further promote the development of new pipeline products. The Department of Health and Human Services, for example, concluded a five-year deal with AstraZeneca in September 2015, where the former received USD 220 million for the discovery of 2 molecules, namely Avibactam and Aztreonam.
However, the development of antibiotic resistance, particularly in the case of bacterial infections, is on the rise and making the antibiotic or its entire class ineffective, thus having a crucial impact on the overall market growth. Resistance levels are expected to increase over the forecast period, according to researchers, but can vary depending on the demand, geographies, and ethnicity of the patient. According to data released by the CDC in 2015, the development of antibiotic resistance has resulted in 23,000 annual deaths in the U.S. and affects approximately 2 million people suffering from chronic infectious disease. For example, multi-resistance Tuberculosis and infections caused by methicillin-resistant Staphylococcus aureus (MRSA) are difficult to treat with antibiotics; hence, new antibiotics need to be developed.
Many pharmaceutical firms will also be performing ongoing clinical trials to support the growth of the antibiotics market. Advances in antibiotic drugs and innovative combination therapies to treat antibiotic-resistant microbial infections can also advance the treatment landscape, driving the growth of this market during the forecast period. Furthermore, one of the factors expected to boost market growth is a separate approval from the regulatory authority for multiple potential pharmaceutical companies to manufacture and develop newer antibiotics. For instance, the U.S. FDA has designated TAXIS Pharmaceuticals, a development-stage drug-discovery company for researching a new class of antibiotic agents to treat life-threatening, multidrug-resistant bacterial infections.
The cephalosporin antibiotics segment dominates the drug class segment, owing to its efficacy against both gram-positive and gram-negative infections and increasing number of prescriptions by physicians for treatment of pneumonia, staph infections, bronchitis, strep throat, tonsillitis, and skin infections.
The carbapenem antibiotics segment, on the other hand, is expected to grow at the fastest CAGR due to heightened demand for prophylactic, carbapenem-based antibiotics and the adoption of carbapenem as the prophylactic measure for the prevention of surgery-related bacterial infections. The World Health Organization also recommends the protocol for infection prevention, i.e., prophylactic administration of carbapenem-based antibiotics that can reduce or eliminate the chances of bacterial infection associated with the surgery and other hospital-acquired infections.
The broad-spectrum antibiotic segment dominated the market with the highest share in 2018. Broad-spectrum antibiotics act against a wide range of diseases, helping to combat antimicrobial resistance. Efficacy, rapid bactericidal activity, no cross-resistance with existing antibiotics, and low probability of developing resistance, are some of the factors responsible for the growth of this segment. Tetracyclines are a group of broad-spectrum antibiotics, exhibiting activity against a wide range of micro-organisms, including gram-positive and gram-negative bacteria, chlamydiae, mycoplasmas, rickettsiae, and protozoan parasites.
While healthcare professionals are on a war footing to prepare for the skyrocketing number of patients admitted due to the deadly coronavirus, supply chain instability predictions are causing havoc in the pharmaceutical industry. For the supply of antibiotics and its APIs, a majority of the leading players in the antibiotics market heavily rely on countries in APAC, China, in particular. Nevertheless, the lockdown on China's manufacturing sites has exposed the global pharmaceutical industry to significant market disruptions in the supply chain of antibiotics. Over 45% of the U.S. penicillin imports from China. In addition, 80% of the antibiotic supply in the U.S is manufactured in China.
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North America region dominates the antibiotics market on account of the rising healthcare expenditure, increasing prevalence of infectious diseases, surging regulatory approvals, and increasing government support for infectious diseases treatment development. In the future, this region is projected to scale up its market share due to increased antibiotic adoption. The United States holds the majority of the North American region's market share, owing to the fact that the U.S. has the highest antibiotic prescription rate in North America. Moreover, there is an increase in the country's per capita health expenditure, which is expected to rise during the forecast period due to the decline in the unemployment rate.
Asia-Pacific is projected as the fastest-growing market for the global antibiotics market during the forecast period. The region is expected to offer significant opportunities during the forecast period due to the prevalence of various infectious diseases, favorable regulatory reforms, an increase in population and unhygienic conditions giving rise to antibiotic resistance bacteria, and significant demand for generic medicines. For instance, Dengue fever is the most common infectious disease in Southeast Asia, and the disease has been increasing rapidly. Several research organizations have shown interest in developing new lines of antibiotic medication for treating dengue. Similarly, Tuberculosis is most common in countries like India, Japan, and China. National Tuberculosis Control Program (RNTCP) in India focuses on providing greater access to newer antibiotics for the treatment of TB.
The new product launches, collaborations, mergers and acquisitions, and regional expansions are some of the key strategic initiatives undertaken by the market players in the antibiotics markets. The major global players in the Antibiotics market are Allergan, Novartis, Mylan N.V, Sanofi, Bayer, Zydus Cadila, Bausch Health, Teva Pharmaceutical Industries Ltd., Melinta Therapeutics, Lupin, Amneal Pharmaceuticals LLC., and others.