HELENA BAYLEY
Analyst, EMEA Thought Leadership, IQVIA, London, United Kingdom

Abstract

Innovative medicines have faced ongoing headwinds in recent years, but within some sectors of the biopharmaceutical industry there is unprecedented growth. In this article, Helena Bayley, Analyst, EMEA Thought Leadership at IQVIA, a leading global provider of clinical research services, commercial insights and healthcare intelligence to the life sciences and healthcare industries, explores how global spending on medicines and volume use will change in the coming years, and the implications for contract development and manufacturing organisations (CDMOs). Helena also examines the therapeutic areas and novel platforms that are driving innovation in the industry; these areas represent potential future sources of investment for CDMOs and should therefore be incorporated into their strategic considerations.

Despite some significant recent progress in terms of therapeutic innovation, the biopharmaceutical industry is experiencing persistent challenges associated with a broad set of macro-factors including energy shocks, geopolitical instability, interest rate hikes, and cost of living challenges. Generics have driven strong volume growth in the global prescription medicines market in recent years, but innovative medicines face challenges: their 3-year volume compound annual growth rate (CAGR) is just 1% (figure 1),
and their total annual volume is yet to recover to 2019 levels. This struggle is also reflected in the lower uptake of newly launched innovative products, where median sales are well below those of pre-pandemic launches in the eight major markets combined (figure 1).

However, the global prescription medicines market grew in value by 10% at list prices in the year to Q1 2024. Biologics, which contribute relatively low volume but high value to the overall market, were the main driver of this value growth – these are predominantly specialty biologics used to treat oncology and immunology indications, but there is also a significant contributi ...