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Medical Markets:

U.S. Market for Gastrointestinal Pharmaceuticals

Business Communications Company Inc.
Management Report  September 2005


Table of Contents

INTRODUCTION

The gastrointestinal drug market is growing rapidly due to recent advancements in pharmaceutical products, advancements in drug delivery of medications and accurate diagnoses. Although the pharmaceutical industry as a whole has several potential blockbuster drugs in late-stage development, productivity has been lower than expected, particularly in light of higher outlays for research and development. It is troubling for the pharmaceutical industry that new drugs are coming to market in the U.S. at the slowest rate in a decade. This comes despite a three-fold increase in research spending (to $30 billion) and a major overhaul of the U.S. Food and Drug Administration’s (FDA) approval process.

Biotechnology products have had a significant impact on overall patient morbidity and mortality. There are several products on the market to treat various gastrointestinal disorders and diseases and many more in clinical trials. These prescription products are expected to greatly impact the market by pushing revenues higher and fueling demands for innovative treatments for gastrointestinal disorders.

This BCC study analyzes therapeutics currently on the market as well as potential products and classes of products that likely will have a significant impact on the future of both the prescription gastrointestinal drug and the over-the-counter gastrointestinal drug markets.

SCOPE OF STUDY

The report contains:

  • An overview of gastrointestinal disorders in the U.S.
  • An overview of the gastrointestinal system and brief explanations of disorders, citing risk factors, where applicable; also cites incidence and mortality
  • Discusses current pharmaceutical treatments, market size and market participants in both the prescription and over-thecounter arenas
  • Coverage of potential treatments now in R&D
  • Analysis of market potential with forecasts to 2009
  • A description of the industry in detail, its relationship to the healthcare industry, its participants and future trends.


REPORT HIGHLIGHTS

The total U.S. market for gastrointestinal disorder treatments was estimated at $16.1 billion for 2004. Rising at an AAGR (average annual growth rate) of 7.3%, the market is expected to reach $22.8 billion in 2009.

The prescription market accounted for the largest percentage of sales with approximately 85%, or $13.7 billion in sales in for 2004. This segment is also rising the fastest, with an AAGR of 7.7%.

The OTC market accounts for the remaining 15%, or $2.4 billion. Rising at AAGR of 14%, it will represent only 13% of the market in 2009.

At approximately 80%, the largest area of market participation for leading competitors is within the prescription drug segment.





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