Cephalosporin Drugs Market

Market Overview

Cephalosporin Drugs Market Size is Expected to grow at higher CAGR 2.7% Over the Forecast Period.

Cephalosporin drugs are a class of β-lactam antibiotics, which is derived from the fungus Acremonium to prevent cell wall synthesis and inhibit the growth of bacterial cells. The antibiotics are effective against both gram-positive and gram-negative bacterial infections, which is why, it is prescribed by the physicians for the treatment of pneumonia, staph infections, bronchitis, strep throat, tonsillitis, and gonorrhea. For the record, untreated mild to severe bacterial infections can lead to serious complications. As per the WHO, globally, around 20 million people die due to bacterial, viral, and fungal infections. Similarly, growing resistance to cephalosporin and other antibiotics is hampering market growth.

 For instance, globally, superbugs, a resistant bacterial strain, causes over 10 million deaths every year and costs about USD 100 trillion to the global economy. To attend to the situation, leading players are heavily investing in R&D activities to develop highly efficient & safe drugs to sustain market growth. In March 2018, Allergen pharmaceutical declared USFDA approval for the use of ‘AVYCAZ’ (ceftazidime and avibactam combination) for the treatment of pneumonia.

Market Dynamics

Factors Driving the Market

Globally, the incidences of infectious diseases are increasing at a concerning rate. As per the WHO, around 2.79 million tuberculosis (TB) cases were reported in India. Similarly, around 340 million new cases of sexually transmitted diseases are recorded every year. Lastly, over 150 million people are suffering from urinary tract infections (UTIs), which is one of the most prevalent bacterial infections across the globe. As per the Journal of Biomedical Sciences, around 2 million people suffer from Hospital-Acquired Infections (HAI) every year. Out of which, about 1, 00,000 people died due to the infection, which is further increasing the demand for cephalosporins.

Notable Trends in Global Cephalosporin Drugs Market

Research and Development

Globally, the increasing antimicrobial resistance is surging the development of new cephalosporin derivatives.  To attend to the situation, several research institutes and leading players are performing extensive research to develop advanced Cephalosporin and increase its potency against different bacterial strains. For example, USFDA recently approved a new cephalosporin antibiotic, named ‘Ceftarolin,’ and Teflaro (ceftaroline fosamil) as an injectable antibiotic for the treatment of acute bacterial skin infections and bacterial pneumonia.

Clinical Trials

The clinical trials are adhering to extensive focus on developing multidrug resistance antimicrobial drugs, such as Cephalosporin. Currently, ceftaroline, clostridium, ceftobiprole, and telavancin are in the clinical trial for the treatment of hetero-resistant streptococci of gram-positive infections. Recently, Bristol Myers developed a novel cephalosporin derivative for various gram-positive and gram-negative bacterial infections. Moreover, the positive results from the ongoing clinical trials and rising incidences of antibiotic resistance are expected to propel the market growth.

Revenue Trend

Global cephalosporin drugs market is expected to witness significant growth during the forecast period on account of the rapid introduction of new treatments for various infectious diseases and increasing healthcare spending. India is one of the major exporter and manufacturer of cephalosporin active pharmaceutical ingredient (API) across the globe.

Collaborations and Joint Ventures

The global cephalosporin drugs market is fragmented in nature. Several key players are engaging in collaboration, mergers, and acquisitions to sustain in the raging competition. For instance, Glaxo collaborated with Shionogi to perform extensive research for the development of cephalosporin antibiotics targeting multi-drug resistant gram-negative bacteria. Similarly, Glaxo and Roche are marketing intravenous formulation of cefuroxime in the U.S. For the record, cefuroxime was initially manufactured and marketed as an oral dosage by Glaxo. Similarly, Roche and GSK are engaged in commercializing the I.V. form of cefuroxime in the U.S. Lastly, Aurobindo joint ventured with Ojsc Diod (Diod) to sell cephalosporin products manufactured by Aurobindo in Belarus, Kazakhstan, and Russia.

Regional Analysis

Asia Pacific the Fastest Growing Cephalosporin drugs Market

North America is dominating the cephalosporin drugs market. This can be attributed to the rising healthcare expenditure, growing incidence of bacterial infectious diseases, surging FDA approvals, and increasing government support for the treatment of various infections. For instance, recently, the U.S. FDA approved ‘TEFLARO,’ a New Drug Application (NDA) developed by Allergen pharmaceuticals. TEFLARO is indicated for the treatment of acute bacterial skin infections of Staphylococcus aureus, which is resistant to many penicillin derivatives. Moreover, the rising prescription of cephalosporin drugs for the treatment of a number of diseases is driving market growth.  In the U.S., oral cephalosporin prescriptions contribute about 30% to the overall prescribed drugs.  

Europe is second in the cephalosporins drugs market on account of the increasing prevalence of influenza, hepatitis A, cholera, and other infectious diseases, rising awareness regarding cephalosporins and its efficacy and advancement in health care infrastructure, growing demand for multidrug combination antibiotics, and rising prescription of cephalosporins antibiotics by physicians. Moreover, 18^th November is declared as the European Antibiotic Awareness Day to raise awareness about antibiotic resistance and to encourage the pragmatic use of antibiotics.

Asia Pacific is expected to witness the fastest growth during the forecasted period on account of the increasing prevalence of infectious diseases, such as tuberculosis, bacterial pneumonia, leprosy, and rheumatic fever. As per the WHO, around 9.2 million people died of chronic infectious diseases. Moreover, growing disposable income, rising awareness regarding antibiotic resistance, and the unregulated sale of generic versions of antibiotics are boosting the market growth. The region is also backed with the presence of leading players that are engaged in the manufacturing and marketing of cephalosporin. China and India are two major contributors to the Cephalosporin drug market, holding about 48% and 25% of the market share in 2018, respectively.  

South America is exhibiting huge potential for the cephalosporins drugs market. This can be attributed to rising healthcare expenditure and rapidly expanding healthcare infrastructure. As per the World Bank report, in 2017, the region heavily invested in the healthcare sector to attend to the rising prevalence of infectious diseases. For instance, Brazil invested about USD 1000 million on healthcare services and is one of the largest markets for cephalosporins antibiotics in the region.

The Middle East is expected to witness significant growth in the cephalosporins drugs market during the forecast period. This can be attributed to the increasing prevalence of infectious diseases, improving healthcare services, and rising disposable income in the UAE, Saudi Arabia, and Kuwait, among others. However, Africa holds the least share in the market due to poor healthcare infrastructure, limited availability of antibiotics, and low spending power.

Segmental Analysis

Third-Generation Cephalosporins to Grow with the Highest CAGR

The global cephalosporin drug market is segmented into generation, route of administration, and applications. By generation, the market is segmented into first-generation cephalosporin, second-generation cephalosporin, third-generation cephalosporin, fourth-generation cephalosporin, and fifth-generation cephalosporin. The third-generation cephalosporin segment is grabbing the highest share in the market as it can treat a number of gram-negative infections, including meningitis, otitis media, serious infections of enterobacteria, pyelonephritis, and skin & soft tissue infections. Whereas, fifth generational cephalosporin is anticipated to grow at a significant rate during the forecast period.

By applications, the cephalosporin drug market is segmented into respiratory tract infection, skin infection, ear infection, urinary tract infection, sexually transmitted infection, and others. The respiratory tract infections segment is dominating the cephalosporin drug market. This can be attributed to the rising incidence of upper & lower respiratory tract infections. For the record, lower respiratory infection is the leading cause of death across the globe. Around 5.8 million people die of lower respiratory infections every year. The sexually transmitted infection is expected to witness substantial growth. In the U.S., the CDC has recommended cephalosporin for the treatment of gonorrhea and other STDs.

Based on the route of administration, the market is trifurcated into oral, injections, and others. Oral cephalosporin is widely prescribed across the globe, but injection is the most preferred treatment option owning to its quick drug delivery. Intravenous cephalosporin injections are generally used for severe infections, such as meningitis, as these antibiotics reach tissues faster through the IV route of administration. The first-generation Cephalosporin antibiotics are used as prophylactic antibiotics in surgeries involving chest, abdomen, and pelvis.

Recent Developments

• In March 2019: Lupin pharmaceuticals joint ventured with Ascend Laboratories and launched ‘SUPRAX’ in the U.S., an oral capsule containing cefixime antibiotics for the treatment of urinary tract infections, otitis media, pharyngitis or tonsillitis, chronic bronchitis, and Gonorrhoea
• In November 2019: Shionogi & Company received the U.S. FDA’s approval for ‘FETROJA’ (Cefiderocol). The drug is intended for the treatment of complicated urinary tract infections caused by gram-negative bacteria, such as Escherichia coli, Klebsiella pneumoniae, Proteus mirabilis, Pseudomonas aeruginosa, and Enterobacteria
• In March 2018: Allergen pharmaceutical declared USFDA approval for the use of ‘AVYCAZ’ (ceftazidime and avibactam combination) for the treatment of pneumonia
• Bristol Myers developed a novel cephalosporin derivative, which is nontoxic and works effectively on gram-positive and gram-negative infections