Face of dermatology industry changing; companies in global skin disease market extending products

Innovative therapies for some skin diseases have stimulated renewed interest in this market among major pharma companies.

This report chiefly analyses prescription drugs used in the management of skin diseases. Skin conditions are among the most common health problems among most national populations, collectively exceeding the prevalence of conditions such as obesity, hypertension and cancer. The considerable costs of skin diseases include physician visits, hospital care, prescription drugs and over-the-counter products for treating or managing these conditions, as well as indirect costs due to productivity losses.

The global market for skin disease treatment technologies, which reached $17.1 billion in 2015, should reach $20.4 billion in 2020, demonstrating a 5-year compound annual growth rate (CAGR) of 3.6%. The US market for skin disease treatment, which dominates the global market throughout the period, totalled $7.5 billion in 2015 and should reach $8.6 billion in 2020, reflecting a 5-year CAGR of 2.6%. BRIC (Brazil, Russia, India, China), the fastest growing region of the global dermatology market with a 5-year CAGR of 6%, should total more than $4.6 billion by 2020.

The dermatology market faces a period of change after several years as a relatively modest and slow-growing sector within the overall pharmaceutical environment. Innovative therapies for some skin diseases have stimulated renewed interest in this market among major pharma companies. New players have emerged as serial acquisitions took small- to medium-size companies into larger ones.

Most big pharma companies entered the dermatology market with topical steroids based on molecules originally developed for other therapeutic areas. The low prices for established products and the lack of new innovative prescription products in dermatology failed to provide them with the growth they sought. Also, the growth of cosmeceuticals and the registration of dermatology products as medical devices meant an increasing presence in the OTC sector.

"Following recessionary pressures and the patent cliff effect, companies are extending the indications of existing products into dermatology," says BCC Research analyst Paul Evers. "For example, products like Enbrel and Humira are now indicated for the treatment of psoriasis. It seems unlikely that the largest companies will re-enter the dermatology sector just because they have a presence in psoriasis, judging by the example of Johnson & Johnson, which sold its ortho dermatology business but continues to market Stelara, a monoclonal antibody for psoriasis."

Skin Disease Treatment Technologies and Global Markets (PHM127B) focuses on four major categories of skin disease: dermatitis (allergic and contact), cancers (including melanoma), immune disorders (including psoriasis), and infections (bacterial, fungal and viral). The report also analyzes global market trends, with data from 2014, 2015, and projections of compound annual growth rates (CAGRs) through 2020.