Central Nervous System Treatment Market Size, Share & COVID-19 Impact Analysis, By Drug Type (Multiple Sclerosis Drugs, Antipsychotic, Anti-epileptic, Antidepressants, Psychostimulants, Narcotic Analgesics, Non-Narcotic Analgesics, Anesthetics, Anti-Parkinson’s, Sedatives, General Anesthesia, and Others), By Distribution Channel (Hospital Pharmacy, Retail Pharmacy, and Others), and Regional Forecast, 2021-2028

The global central nervous system treatment market size was USD 81.67 billion in 2020. The global impact of COVID-19 has been unprecedented and staggering, with the central nervous system treatment witnessing a negative demand shock across all regions amid the pandemic. Based on our analysis, the market exhibited a decline in the growth by -4.2% in 2020. The market is expected to grow from USD 89.02 billion in 2021 to USD 166.53 billion in 2028 at a CAGR of 9.4% in the 2021-2028 period. The sudden increase in CAGR is attributable to this market’s demand and growth returning to pre-pandemic levels once the pandemic is over.

The central nervous system (CNS) treatment market is projected to expand at an incredible growth rate. Over the past years, the world has witnessed a striking increase in neurological disorders' diagnosis rate. According to The Parkinson's Foundation, around 60,000 individuals from America are diagnosed with Parkinson’s disease. Additionally, over 1 million patients seek treatment for the disease in the country. This rise in chronic neurological illness will considerably stimulate market growth.

Combined with this, the industry is also expected to witness new product launches resulting in increased access to various patient groups globally. Furthermore, the challenges faced in developing therapeutics for central nervous system disorders have engaged researchers and developers to innovate new drugs into the market.

COVID-19 Impact: Damaging Effect on Market Sales

The sudden outbreak of COVID-19 and the virus's consistent spread have significantly obstructed the supply chain of key central nervous system treatment drugs in the market. The pharmaceutical companies that operate in the CNS market have focused their R&D expenditure and workforce towards the development of COVID-19 therapeutics and vaccines. This shift has led to an estimated US$ 1.4 Bn sales drop in the central nervous system treatment in the year 2020. Additionally, over-the-counter products such as anesthesia and products such as anesthesia have witnessed an increased dip in revenue growth owed to lower demand from respective end-users. However, the market is estimated to stabilize and showcase astounding growth in 2021 attributable to market growth returning to the pre-pandemic level.

LATEST TRENDS

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Mergers, Acquisitions, and Partnerships are Key Trend Exhibited by the Market

One of the significant trends that the market exhibits are mergers, acquisitions, and partnerships. Predominant companies in the market involved in innovating CNS treatment drugs have entered into distribution and developmental agreements with fellow competitors. For instance, in February 2020, Biogen agreed with Sangamo Therapeutics to innovate gene therapy drugs for various neurological diseases. Such strategic steps taken by key companies operating in the central nervous system treatment market will significantly improve the prospects of the industry.

DRIVING FACTORS

Growing Geriatric Population and Associated Neurological Disorders to Fuel Product Demand

Worldwide there is a rapid increase in the prevalence and incidence of neurological disorders such as multiple sclerosis, Alzheimer’s, Parkinson’s among others. According to Public Health England, the number of individuals who have multiple sclerosis has increased to over 131,000 in the U.K for the year 2018.  This increase is set to remarkably influence the growth of the market in the coming years.

On the other hand, Alzheimer’s disease is also witnessing an increase in prevalence in countries with a growing geriatric population. For instance, according to the Alzheimer's Association, more than five million individuals are affected by Alzheimer’s disease, and this number is set to rise to 14 million by 2050. Also, the Organization reports that the treatment and care for Alzheimer’s cost the U.S government over US$ 305 Bn in 2020.

Promising Pipeline Drugs to Create New Growth Prospects

Prospective product launches for treating neurological disorders are anticipated to propel the market growth over the forecast duration. These upcoming launches are expected to increase access to treatment in developing countries.

For instance, Lenabasum, is currently in Phase 3 clinical trial is for evaluation of safety and efficacy in the treatment of diffuse cutaneous systemic sclerosis by Corbus Pharmaceuticals Inc. The molecule is set to launch globally by 2023. Also, In January 2019, Corbus Pharmaceuticals Inc. also entered into a licensing agreement with Kaken for the commercialization of Lenabasum in Japan. These factors are projected to propel market growth in the coming years.

RESTRAINING FACTORS

Time-Consuming Approval Process and Stringent Regulatory Framework to Restrain Market Growth

Central nervous system treatment therapeutic research and development require a higher amount of investment than other therapeutic disease areas. Since the therapeutics developed for central nervous system treatment had to cross the blood-brain barriers, it requires a longer developmental and approval process. The market also faces challenges in patient recruitment and higher cost per approval in the entire pharmaceutical industry.

Moreover, an adverse occurrence with the use of these drugs is also a major factor that is anticipated to hinder the growth of the market. For instance, in 2018, the U.S FDA issued a warning notifying that the use of Gilenya in relapsing multiple sclerosis patients could lead to severe disability if the medication is stopped. These issues could restrain the market growth during the forecast period.

SEGMENTATION

By Drug Type Analysis

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Multiple Sclerosis Dominated Market Owed to Higher Sales Revenue

Based on the drug type, the market is divided into, multiple sclerosis drugs, anti-psychotic, anti-epileptic, antidepressants, psychostimulants, narcotic analgesics, non-narcotic analgesics, anesthetics, anti-Parkinson’s, sedatives, general anesthesia, and other central nervous treatment drugs. The majority of the share was captured by multiple sclerosis, with a market share of 26.3% in 2020. The major factor driving multiple sclerosis drugs in the market is the constant innovation and development of therapeutic molecules to treat disease indications. Combined with this the multiple sclerosis drugs segment is witnessing an increase in partnerships and R&D.

Antipsychotic and anti-epileptic drugs have followed the lead in terms of market revenue for the year 2020. The increasing incidence and prevalence of these disorders are expected to predominantly influence the segments' growth. According to the World Health Organization (WHO) (2019), globally, around 50 million individuals have epilepsy. Besides, antidepressants are estimated to witness considerable growth owing to growing awareness regarding mental health in developing nations.

By Distribution Channel Analysis

Increasing Sales of Prescription-based Drugs to Support Hospital Pharmacy Segment

Based on the distribution channel, the market is segmented into hospital pharmacies, retail pharmacies, and others. The hospital pharmacy segment captured the lion’s share worldwide attributable to the higher rising preference of treatment from hospitals and more significant sales revenue of prescription drugs from the distribution channel. The retail pharmacy segment also garners importance in the market because of the increasing access to prescription drugs and discounts offered by retail pharmacy giants. Besides, the other segment includes online pharmacies, which are projected to witness a lucrative CAGR during the forecast period due to the internet's penetration in emerging countries.

REGIONAL INSIGHTS

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North America dominated the market by generating a revenue of USD 38.25 billion in the year 2020. The dominance of this region in the central nervous system treatment market is attributable to the strong presence of key players in the region combined with higher access to treatment of CNS disorders. Combined with this, government agencies such as the U.S FDA are constantly engaging in informing the public and healthcare professionals regarding the treatment and regulatory guidelines for managing CNS diseases. For instance, in 2018, the U.S FDA issued a draft guidance document for the development of drugs for the treatment of Alzheimer’s disease.

Europe followed the lead by generating the second largest revenue in the market for the year 2020. This is owed to the favorable reimbursement policies and largest access to treatment through public healthcare providers such as the National Health Service (NHS) of the U.K. Combined with this, the European regulatory approval is also one of the highly recognized approvals by major companies making it one of the most lucrative regions for product launches.

The countries of Asia Pacific are anticipated to showcase stellar CAGR attributed to factors such as increasing geriatric population, evolving healthcare infrastructure, a larger presence of biosimilar over the counter medication manufacturing countries, and rising prevalence of neurological disorders.

On the flip side, Latin America, Middle East, and Africa are projected to showcase reasonably slower market growth rates due to the lack of product approvals in the region combined with weaker product penetration.

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KEY INDUSTRY PLAYERS

Major Companies’ Focus on Strong Presence in Emerging Countries Through Partnerships

The market is fragmented due to the presence of various companies aiming at central nervous system treatment therapeutics. Robust pipeline and strategic distribution agreements have enabled companies to hold a strong position in the market. Biogen dominates the market with the company’s crucial molecules generating significant revenue in the year 2020. Other players operating in the market are, Johnson and Johnson Services, Inc., Pfizer Inc., RF. Hoffman-La Roche Ltd., Novartis AG, Sanofi, Teva Pharmaceutical Industries, Otsuka Holdings among others.

LIST OF KEY COMPANIES PROFILED:

• Biogen (Massachusetts, U.S)


• Pfizer Inc. (New York, U.S)


• F. Hoffmann-La Roche Ltd (Switzerland)


• Novartis AG (Basel, Switzerland)


• Johnson & Johnson Services, Inc. (New Jersey, U.S)


• Teva Pharmaceutical Industries Ltd. (Israel)


• Sanofi (Paris, France)


• Otsuka Holdings (Japan)


• Other Players

KEY INDUSTRY DEVELOPMENTS:

• March 2019 – Novartis AG received U.S FDA approval for marketing of Mayzent to treat patients who have multiple sclerosis.


• May 2020 – Neurocrine announced that the company would be delaying the launch of Ongentysis, a drug indicated to treat Parkinson’s disease owing to challenges experienced by the ongoing global pandemic.

REPORT COVERAGE

An Infographic Representation of Central Nervous System Treatment Market

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The global market research report provides a detailed central nervous system treatment market analysis. It focuses on key aspects such as leading companies, drug class type, and distribution channel. Besides this, it offers insights into the market trends and highlights new product launches, key industry developments, and pipeline analysis. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the developed market in recent years.

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