Global Market Study on Compounding Pharmacies: Regulatory Harmonization and Innovative Therapeutic Areas to Boost Demand for Compounded Drugs


  • Published On : Aug-2016 |
  • Pages : 160 Pages |
  • Format :

Persistence Market Research’s (PMR) latest report examines the global compounding pharmacies market for the period 2015 - 2021. The primary objective of the report is to offer updates and information related to market opportunities in the global compounding pharmacies market. This report deals with compounded drugs, which are customized medicines prepared by a pharmacist or a physician and come in strengths that are not commercially available. Compounded drugs are available in various forms such as oral applications (capsules, mixtures, etc.), topical applications (creams, gels, lotions, ointments, etc.), and suppositories. By 2021, the global compounding pharmacies market is expected to account for US$ 9.75 Bn at a CAGR of 5.3% over the forecast period.

This PMR report analyzes the global compounding pharmacies market in terms of market value across products, end use, therapeutic areas, and regions to help the audience better understand and assess market opportunities.

Products

End use

Therapeutic areas

Regions

  • Oral medications

  • Topical medications

  • Mouthwashes

  • Suppositories

  • Medications for adults

  • Medications for veterinary purposes

  • Medications for children

  • Medications for the geriatric population

  • Pain medications

  • Hormone replacement therapy

  • North America

  • Latin America

  • Europe

  • Asia Pacific

  • The Middle East & Africa

The report starts with an overview of the global compounding pharmacies market, covering market performance in terms of revenue. This section also includes PMR’s in-depth analysis of key trends, drivers, and restraints from supply and demand perspectives. The next few sections of the report analyze the market on the basis of products, end use, therapeutic areas, and regions; and present market projections in terms of value for the forecast period. 

Research Methodology

The forecast presented here assesses the total revenue generated by the global compounding pharmacies market, focusing on the market value of global compounding pharmacies across the five geographies to arrive at the market size. Market forecasting starts with sizing the current market, which forms the basis for a forecast of how the market is anticipated to take shape in the near future. For this, PMR referred to several subject matter experts in the compounding pharmacy domain. Given the characteristics of the market, we triangulated the outcome based on different supply side and demand side analyses and market dynamics such as regulations and GMP guidelines of the compounding pharmacies market. Quantification of data has been considered along with the provision of quality insights collected directly from the market post discussion with pharmacists, suppliers, physicians, and subject matter experts. We have also taken into consideration year-on-year (Y-o-Y) growth based on regional growth analysis to understand the predictability of the global compounding pharmacies market and to identify the right opportunities.

The various segments of the global compounding pharmacies market have been analyzed in terms of Basis Point Share (BPS) to understand the individual segments’ relative contribution to market growth. This detailed level of information is important for identification of key market trends. Another key feature of this report is the analysis of the global compounding pharmacies market by region further segmented on the basis of countries and revenue forecasts in terms of absolute dollar opportunity. Regional trends have been introspected, identified, and applied while forecasting the growth rates in the market. Additionally, the absolute dollar opportunity provided in the report is critical and is expected to help in assessing the level of opportunity that a provider can look to achieve from a sales perspective in the global compounding pharmacies market. 

PMR has also developed the market Attractiveness Index for all four segments – products, end use, therapeutic areas, and regions – to help providers identify real market opportunities. The final section of the report focuses on the global compounding pharmacies market landscape to provide readers with a dashboard view based on categories of providers in the global compounding pharmacies product portfolio. Their key developments and strategies have also been included wherever possible. Key market players covered include B. Braun Melsungen AG Company, Fagron, PharMEDium Services LLC, Institutional Pharmacy Solutions, Cantrell Drug Company, Triangle Compounding Pharmacies, Lorraine’s Pharmacy, and Fresenius Kabi AG.

The compounding pharmacies market is slated to exhibit a stable CAGR owing to cost factors and increase in product substitutions. In 2015, the global compounding pharmacies market was valued at US$ 6.79 Bn and is projected to account for US$ 7.09 Bn by the end of 2016, reflecting a Y-o-Y growth rate of 4.5%. By 2021, the global compounding pharmacies market is expected to account for US$ 9.75 Bn at a CAGR of 5.3% over the forecast period (2015 - 2021). The market will be driven by blockbuster drug expiries in 2016, and this trend is likely to be dominant all over the world.

Market segmentation

compounding-pharmacies-market

Key drivers and trends

Increasing medicinal droughts of prescription medicine across the world, rising costs of branded prescription equivalents, and inadequate accessibility to drugs is expected to enhance the growth of compounded drugs during the forecast period. Also, the growing popularity of hormone replacement therapies and pain management therapies is fueling the growth of the compounding pharmacies market. Unlike branded prescription drugs, compounded medicines are available in combined formulations and in alternate dosage forms such as lozenges and lollipops, usually administered to patients with swallowing difficulties. This is another key driver augmenting market growth.

The major distribution channels for compounded drugs are typically independent store formats and traditional compounding pharmacies. The trend of blockbuster drugs going off-patent in 2016 is expected to promote compounded repackaging of branded equivalents. The global compounding pharmacies market is also witnessing a rapid surge in the production of menopausal hormone replacement therapies and cosmetic dermatological applications. There is also an increasing occurrence of inspections and regulatory supervision of manufacturing facilities, especially in US and Europe to ensure better patient safety. A few other notable trends include a rise in demand for geriatric drugs and an increasing adoption of topical applications used in scar treatment medication, mark reduction, and age-defying solutions. These trends have been observed in the US, Australia, and Europe markets.

Region-wise market projections

The revenue for the compounding pharmacies market is expected to register a CAGR of 6% over 2015 - 2021. In terms of revenue share, North America is expected to dominate the market during the forecast period, followed by Asia Pacific and the European region respectively. The North America compounding pharmacies market is by far the largest and is expected to experience stable growth in terms of market value. The market in this region is estimated to hold 63.9% share by the end of 2015 and exhibit strong Y-o-Y growth rates ranging between 2.9% and 6.5% over the forecast period. Asia Pacific, followed by Europe are the two other main regional markets expected to exhibit stable Y-o-Y growth rates ranging between 5.0% and 10.4% respectively over the forecast period. Certain markets in Asia Pacific such as Singapore are likely to witness double-digit growth rates. The Europe market is expected to expand at a stable CAGR over the forecast period. Major companies based in Europe are looking to expand their base outside Europe to better cater to the growing global demand. The compounding pharmacies market in Latin America is expected to exhibit a Y-o-Y growth rate of 3.7% over 2014 - 2015 to reach 8.3% over 2020 - 2021. The Middle East & Africa market accounts for a nominal share of the overall compound pharmacies market but is expected to evolve over time with the expansion of infrastructural facilities and skill base of pharmacists.

Key market players covered in the report include B. Braun Melsungen AG Company, Fagron, PharMEDium Services LLC, Institutional Pharmacy Solutions, Cantrell Drug Company, Triangle Compounding Pharmacies, Lorraine’s Pharmacy, and Fresenius Kabi AG.

Key market participants covered in the report:

  • B. Braun Melsungen AG Company.
  • Fagron.
  • PharMEDium Services, LLC.
  • Institutional Pharmacy Solutions.
  • Cantrell Drug Company.
  • Triangle Compounding Pharmacies.
  • Lorraine’s Pharmacy.
  • Fresenius Kabi AG.
  • Other.
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