Antipsychotic Drugs Market Size, Share & COVID-19 Impact Analysis, By Disease (Schizophrenia, Bipolar Disorder, Unipolar Depression, Dementia, and Others), By Drug (Risperidone, Quetiapine, Olanzapine, Aripiprazole, Brexpiprazole, Paliperidone Palmitate, and Others), By Therapeutic Class (First Generation, Second Generation, and Third Generation), By Distribution Channel (Hospital Pharmacies, Drug Stores & Retail Pharmacies, and Online Pharmacies), and Regional Forecast, 2022-2029

The global antipsychotic drugs market size was valued at USD 14.54 billion in 2021 and is projected to grow from USD 15.50 billion in 2022 to USD 24.74 billion by 2029, at a CAGR of 6.9% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the global antipsychotic drugs market exhibited a growth of 10.8% in 2020 as compared to 2019.

In the modern healthcare scenario, one of the disease groups expected to witness considerable growth in patients globally is the group of psychiatric illnesses. This group of psychiatric illnesses includes mental diseases that have the symptoms of psychosis such as schizophrenia, bipolar disorder, and depression. Psychosis is a critical symptom attributed to mental illness, including the patient's loss of reality affecting how he processes information.

The fastest growing demand for these medications is attributed to the increased prevalence of schizophrenia and bipolar disorder. Furthermore, prominent companies, such as Janssen Global Services, Otsuka Pharmaceutical Co., Ltd., and Eli Lilly, are anticipated to boost the market growth during the forecast period. Also, the launch of drugs in newer forms such as long-acting injectables with greater benefits will bode well for the market growth during the forecast period.

COVID-19 IMPACT

Increasing Adoption of Long-Acting Injectables (LAIs) amid COVID-19 Pandemic to Favor Growth

In terms of the market, there was a greater transition toward telemedicine for the management of psychotic diseases. Furthermore, the lockdown and stay-at-home measures caused a significant impact on the mental health of a considerable number of individuals across the globe. This led to greater adoption of these medications to cope with these symptoms. Hence, the global market witnessed a strong sales performance during the pandemic. This is also attributable to the greater adoption of Long-Acting Injectables (LAIs) during the pandemic. Otsuka Pharmaceutical Co. Ltd.’s drug (ABILIFY MAINTENA) witnessed an increase of 13.9% in its revenue in 2020 compared to 2019. Overall, the COVID-19 impact was positive on the growth of the market in 2020. The market is anticipated to witness stabilization of the growth from 2021 onwards.

LATEST TRENDS

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Strong Adoption of Long-Acting Injectables (LAIs) to Determine Market Growth Trajectory

In recent years, there has been significant changes in the R&D for these drugs. This is due to increasing awareness amongst individuals regarding the economic burden that mental disorders exert upon the healthcare system. This has led more and more individuals to demand more effective treatment for psychiatric illnesses. However, one of the most critical factors that resulted in high unmet patient needs and a significant lack of adoption of these therapeutics is the non-adherence to medications. Several patients who are prescribed antipsychotics often do not follow the prescription guidelines and often suffer from relapses of psychotic episodes due to this non-adherence.

Hence, many biopharmaceutical companies have undertaken R&D and launched long-acting injectable versions of antipsychotic drugs. For instance, in November 2021, Teva Pharmaceuticals announced positive results from its Phase III trial on a subcutaneous, long-acting injectable risperidone formulation in the treatment of schizophrenia. These long-acting injectable products have the efficacy of the daily pills and eliminate the need to monitor the patient’s drug intake. Hence, the number of benefits attributed to this form of antipsychotic has led to greater degree of product adoption.

For instance, Paliperidone (Invega Trinza and Invega Hafyera) comes in a newer long-acting injectable formula that requires patients to take this injection just four times a year. As a result of this innovation, the healthcare professionals monitoring the psychiatric treatment can effectively administer the treatment leading to improved treatment outcomes. Hence, one of the recent trends in the market is the increased adoption and launch of these forms of drugs. Such market trends will further propel the global market growth during the forecast period.

The brexpiprazole segment held a substantial market share in 2021. The primary factor for the segment’s growth is an increase in product approvals from various regulatory bodies related to different age groups. In contrast, risperidone, quetiapine, and olanzapine exhibited a decline in CAGR due to patent expiry and generic equivalence. This segment is expected to decline during the forecast period further.

DRIVING FACTORS

Increased Prevalence of Mental Health Disorders to Surge Market Growth

The global market for these drugs is anticipated to witness positive growth trends due to the strong increase in the prevalence of psychotic disorders. This increase in the number of patient pools globally is anticipated to drive the growth of the market. For instance, according to a research paper published in the Lancet Global Health in 2020, mental disorders are expected to cost the global economy an estimated USD 6 trillion by 2030.

These statistics are expected to intensify the demand for these therapeutics as the general awareness of the severity of these mental illnesses grows. According to the estimates published by the World Health Organization (WHO) in 2022, about 24.0 million people suffer from schizophrenia on a global level. However, in recent years, the prevalence of schizophrenia and bipolar disorder has increased substantially. This has led several pharmaceutical companies to engage in the R&D of these medications, leading to new product launches in the forecast period. Such factors are contributing to the global market growth in the forthcoming years.

Rise in R&D Initiatives for the Development of Novel Antipsychotic Drugs to Lead to Market Growth

In the recent era, there have been numerous research and development initiatives regarding the development of these medications. These R&D activities were conducted to increase the safety and efficacy of such drugs. In key countries, the increase in awareness caused the greater adoption of these drugs, significantly increasing the market growth in key countries. Despite the stringent drug approval policies, adoption, and reimbursement, the R&D culture for these drugs has grown over the decades. Clinical trials of these drugs are expected to strongly move forward the process of drug development.

For instance, Karuna Therapeutics is advancing its product pipeline by introducing novel drug candidates such as KarXT (xanomeline-trospium) for the treatment of various psychiatric and neurological conditions. Currently, the candidate is being evaluated in late-stage clinical trials as a potential treatment for schizophrenia and psychosis in Alzheimer’s disease. This increase in awareness, combined with new launches based on innovative R&D, is expected to drive the market growth.

RESTRAINING FACTORS

Side Effects Attributed to Antipsychotic Drugs to Deter Greater Market Adoption

Despite the strong benefits of the usage of these key market products for the treatment of a wide range of psychiatric illnesses, there are some limiting factors. In terms of these products, the adverse reactions attributed to the usage of these drugs are one of these critical restraining factors. According to a report published by JAMA Psychiatry in 2018, children and young adults beginning antipsychotic treatment for diagnoses other than schizophrenia were significantly more likely to die unexpectedly than other youths. Such factors are expected to limit the market growth strongly.

Some of the common adverse reactions of these medications include mild sedative symptoms, dry mouth, akathisia, issues relating to digestion, weight problems, acute dystonia, and tardive dyskinesia. These adverse reactions daily may significantly impact the patient’s daily functioning. These adverse reactions may also lead to non-adherence to these medications, further limiting the market growth. Furthermore, the U.S. FDA black box warning links the atypical antipsychotic usage with an increased risk of pneumonia leading to death in elderly dementia patients. Such adverse effects of these drugs might limit the market growth during the forecast period.

SEGMENTATION

By Disease Analysis

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Significant Product Launches for Schizophrenia to Enable the Segment to Hold Highest Market Share

Based on disease, the global market is segmented into schizophrenia, bipolar disorder, unipolar depression, dementia, and others.

The schizophrenia segment is anticipated to grow at the fastest pace in the forecast period due to the strong prevalence of this disease globally, coupled with many product launches in this segment. The bipolar disorder segment is expected to account for the second-largest market share due to strong usage of these drugs to stabilize the symptoms of the disease. For instance, according to an article published by the NeuRA Library in 2022, the lifetime worldwide prevalence of bipolar disorder is around 1.0%, and the one-year prevalence is around 0.5%.

The unipolar depression segment is anticipated to account for the third-largest market share due to the usage of prominent antipsychotic drugs, such as Rexulti, to offer some relief from the symptoms of depression.

The dementia segment is anticipated to account for a lower market share during the forecast period. Some of the reasons to contribute to the lowering of the market share of this segment include the FDA’s black box warning for antipsychotic usage for dementia patients, which limits its widespread adoption.

By Therapeutic Class Analysis

Presence of Numerous Second Generation Antipsychotics to Enable the Segment’s Dominance

On the basis of therapeutic class, the market is segmented into first generation, second generation, and third generation.

The second generation segment dominated the global market during the forecast period. This segment’s dominance is attributable to the presence of a large number of second generation drugs in the global market. Some of the prominent second generation antipsychotics include SEROQUEL XR, ZYPREXA, VRAYLAR, INVEGA HAFYERA, and Rexulti. Furthermore, the stronger safety profile and greater efficacy of these generations of drugs would also contribute to the growth of this segment.

The first generation segment is anticipated to grow at the lowest CAGR due to the comparatively lesser safety profile of these drugs. For instance, drugs belonging to the first generation segment are associated with a greater risk of neurological side effects

The third generation segment is anticipated to account for the highest CAGR in the forecast period. Some of the contributive reasons for the segment’s high growth include the new product launches in this segment, coupled with a greater degree of technological superiority over the other drug classes.

By Drug Analysis

Stronger Adoption Coupled with Increased Sales of Aripiprazole to Enable the Segment’s Highest CAGR

Based on drug, the market is segmented into risperidone, quetiapine, olanzapine, aripiprazole, brexpiprazole, paliperidone palmitate, and others. The others segment holds the dominant position in terms of market share owing to the launch of advanced products, coupled with the presence of a large number of drugs in this segment. The aripiprazole segment holds the highest CAGR. The stronger adoption of third-generation products resulted in the segment’s increased sales. Also, significant product approvals are anticipated to register the highest CAGR in the forecast period. For instance, in September 2020, Otsuka Pharmaceutical Co., Ltd. received regulatory approval in Japan for the additional indication of suppression of recurrence and relapse of mood episodes in bipolar I disorder for ABILIFY MAINTENA (aripiprazole), a long-acting injectable suspension. The high growth rate of this segment is attributable to the increasing demand for efficient and safer antipsychotic drugs.

The paliperidone palmitate segment holds the second position in terms of the drug segment. For instance, in September 2021, the Janssen Pharmaceutical Companies of Johnson & Johnson received U.S. FDA approval for long-acting atypical antipsychotic INVEGA HAFYERA (6-month paliperidone palmitate). It is the first-and-only twice-yearly injectable for the treatment of schizophrenia (adults).

By Distribution Channel Analysis

Transition toward Online Pharmacies to Boost Segment’s Strong Growth in 2022-2029

Based on distribution channel, the market is segmented into hospital pharmacies, drug stores & retail pharmacies, and online pharmacies.

The hospital pharmacies segment is projected to account for the largest market share during the forecast period. The segment's dominance is attributable to the fact that majority of the medications for the treatment can only be prescribed after thorough examinations by trained medical professionals at these institutions.

The drug stores & retail pharmacies segment is expected to account for the second-largest market share. It is considered an important distribution channel as oral prescription drugs, and prescription refills can be obtained in these settings.

The online pharmacies segment is anticipated to register the highest CAGR in the forecast period as they ensure increased patient convenience and ease in terms of medication procurement.

REGIONAL INSIGHTS

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On the basis of region, the global market can be segmented into North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

North America stood at USD 7.57 billion in 2021 and is anticipated to dominate the global market during the forecast period. Some of the critical factors attributable to the region’s market dominance include the strong prevalence of psychiatric illnesses in the region and the market presence of prominent biopharmaceutical companies. According to the report published by National Alliance on Mental Illness (NAMI) in 2022, the annual prevalence of bipolar disorder in the United States is 2.8%. It is estimated that 7 million people have bipolar disorder. Other contributive factors include the strong adoption of antipsychotics with technological superiority in the region. Furthermore, strong awareness of the critical nature of mental illnesses in the region is expected to boost the market growth in the region during the forecast period.

Europe is estimated to be the second-most dominant region in terms of the antipsychotic drugs market share. This is due to the increased awareness regarding psychiatric illnesses in the region and the strong prevalence of these disorders. For instance, as per an article published by PubMed in 2021, the lifetime prevalence of bipolar disorder in England was approximately 1.7%.

The market in Asia Pacific is estimated to grow at the highest growth rate, especially in emerging countries such as India and China. The adoption of these drugs is expected to gain impetus in the region due to the various awareness programs regarding psychiatric illness and the increasing cases of mental illnesses in the region. For instance, the World Health Organization (WHO) estimates that in 2020, 56 million and another 38 million individuals in India were expected to suffer from depression and anxiety disorders, respectively.

Latin America and the Middle East & Africa (MEA) account for a limited market revenue share during the forecast period. However, improvement in awareness of mental health disorders, coupled with increased healthcare expenditure in Latin America and the Middle East & Africa, is expected to propel the antipsychotic drugs market growth.

KEY INDUSTRY PLAYERS

Strong Antipsychotics Portfolio of Janssen Global Services LLC and Otsuka Pharmaceutical Co. Ltd. to Lead to their Market Dominance

In terms of the competitive landscape of the global market, the scenario reflects the presence of certain biopharmaceutical companies that maintain market dominance due to their robust psychiatric drug portfolio. The key players include Janssen Global Services LLC and Otsuka Pharmaceutical Co. Ltd. The market dominance of Janssen Global Services LLC is due to its prominent antipsychotics portfolio (Invega Sustenna and Risperdal Consta), strong geographical presence, and a robust R&D pipeline for neuropsychiatric drugs leading to significant product approvals.

Another key company with a significant revenue share of the global market is Otsuka Pharmaceutical Co. Ltd. Some of the reasons attributable to Otsuka Pharmaceutical Co. Ltd.'s strong market presence include the company's prominent antipsychotic drugs portfolio, which comprises Abilify Maintena, Abilify, and Rexulti to treat schizophrenia.

Other market players with a significant presence in the global market include Eli Lilly and Company, Sumitomo Dainippon Pharma Co., Ltd., and Bristol-Myers Squibb Company. These companies are anticipated to increase their market share during the forecast period due to the presence of critical antipsychotics in their drug portfolio.

LIST OF KEY COMPANIES PROFILED:

• H. Lundbeck A/S (Denmark)


• Otsuka Pharmaceutical Co., Ltd. (Japan)


• Janssen Pharmaceuticals, Inc. (Johnson & Johnson) (Belgium)


• Eli Lilly and Company (U.S.)


• ALLERGAN (AbbVie, Inc.) (U.S.)


• Teva Pharmaceutical Industries Ltd. (Israel)


• Dr. Reddy’s Laboratories Ltd. (India)


• Sumitomo Dainippon Pharma Co., Ltd. (Japan)


• Alkermes plc (Ireland)


• Bristol-Myers Squibb Company (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• February 2022: Alkermes plc received positive results from ENLIGHTEN-Early, a phase 3b study that assessed the effect of LYBALVI (olanzapine and samidorphan) compared to olanzapine on body weight in young adult patients (ages 16 to 39; mean age: 26 years) with schizophrenia, schizophreniform disorder or bipolar I disorder.


• January 2022: Otsuka America Pharmaceutical, Inc. and H. Lundbeck A/S received the U.S. FDA approval for the supplemental new drug application (sNDA) of REXULTI (brexpiprazole) for the treatment of schizophrenia in pediatric patients from the ages 13 to 17.


• February 2021: Dr. Reddy's Laboratories Ltd. launched Fluphenazine Hydrochloride Tablets, USP, a therapeutic equivalent generic version of Prolixin Tablets, 1 mg, 2.5 mg, 5 mg, and 10 mg, approved by the U.S. Food and Drug Administration (USFDA).   

REPORT COVERAGE

An Infographic Representation of Antipsychotic Drugs Market

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The global antipsychotic drugs market report provides a detailed analysis of the market. It focuses on key aspects such as the prevalence of psychiatric disorders by key regions, pipeline analysis, and key industry developments. Additionally, the report includes an overview of new product launches, an analysis of the cost and burden of mental health disorders, the impact of COVID-19 on the market, and an analysis of first-generation antipsychotics versus second & third-generation antipsychotics. Besides these, the report offers insights into the market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the market in recent years.

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