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The global multiple sclerosis drugs market size was USD 26.05 billion in 2020. The global impact of the COVID-19 has been unprecedented and staggering, with multiple sclerosis drugs witnessing a moderate negative demand shock across all regions amid the pandemic. Based on our analysis, the global market exhibited a growth rate of 4.2% in the year 2020, which is lower as compared to the previous years. The market value is USD 27.38 billion in 2021 and is expected to reach USD 41.99 billion in 2028 at a CAGR of 6.3% in the 2021-2028 period. The sudden rise in CAGR is attributable to the market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.
Multiple Sclerosis (MS) is an immune-mediated disease of the central nervous system. It is characterized by demyelination, inflammation, and degenerative changes such as progressive brain and spinal cord atrophy, neuroaxonal loss, and others. According to the Multiple Sclerosis Trust, 2.5 million people in the world were estimated to have MS in 2017. In addition to this, the treatment cost of MS has become an economic burden in many countries. According to the Institute for Clinical and Economic Review, the annual cost of treatment in the U.S. is estimated to be USD 28,000.0 million. Hence, there is active government support for the treatment in terms of better healthcare spending, expert recommendations, and drug approvals.
Several pharmaceutical companies are conducting clinical studies for the development of innovative therapies for multiple sclerosis. For example, in December 2020, Adamas Pharmaceuticals, Inc. announced results from the phase 3 clinical study on ADS-5102, an investigational amantadine agent for the treatment of MS patients. Furthermore, new product launches and significant R&D investments are expected to contribute to the expansion of the multiple sclerosis drugs industry.
Disruption in Supply Chain of Manufacturers to Negatively Impact the Market
COVID-19 pandemic has caused serious disruption in the pharmaceutical industry across the globe. The multiple sclerosis drugs market has witnessed a moderate decline in the growth rate across 2019-2020. The market has witnessed a growth rate of 4.2% in the year 2020. This is majorly due to the outbreak of the COVID-19 pandemic, as it has caused some disruption in the supply chain of several major players operating in the industry.
The Covid-19 pandemic has caused an ambiguous scenario for various players operating in the market. By analyzing the overall effect, it can be said that the market will witness a moderate decline in the growth rate amidst the pandemic. However, with returning patient demand, the industry will witness a positive growth trajectory post-pandemic timeframe.
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Shift towards Monoclonal Antibodies for Treatment to Boost the Market
Monoclonal antibodies are now being increasingly employed for the treatment of MS. Various clinical trials are focused on developing novel multiple sclerosis drugs using these antibodies. Moreover, most of the immunosuppressive drugs used for treating this condition are humanized monoclonal antibodies, whose demand is surging worldwide. Ocrevus, which was launched in March 2017 by F. Hoffmann-La Roche Ltd., became one of the blockbuster drugs generating revenue of USD 3.1 billion in 2020, further expanding the market.
In March 2020, TG Therapeutics, Inc. presented the results from its phase 2 clinical trials on ublituximab (TG-1101), an anti-CD20 monoclonal antibody being developed as a potential drug for MS. The increased market penetration, rapid adoption of immunosuppressive drugs, and advancements in the production of specific targeting monoclonal antibodies have resulted in the increased use of monoclonal antibodies. This is poised to surge the market during the forecast period.
Significant R&D Investment to Boost the Market
The market is witnessing huge attraction in terms of clinical research and R&D investment. Many pharmaceutical companies are focusing on developing novel therapies for treating MS. For instance, Pipeline Therapeutics is conducting clinical trials on PIPE-307, which is a selective M1 receptor antagonist for MS. Increased research activities have also paved the way for many research collaborations between pharmaceutical companies and research institutes, further favoring the market. Increased research on various novel candidates has resulted in strengthening the pipeline portfolio of leading as well as small-scale pharmaceutical companies. The expected launch of these pipeline candidates is likely to drive the multiple sclerosis treatment market growth.
Proactive Government Support and Recommendations to Fuel the Market
The global burden of MS is increasing at an alarming rate and is becoming an issue of concern for both healthcare providers and governments. The rising prevalence of the disease has forced governments of many countries to take proactive measures through guidelines and recommendations. Apart from this, various awareness initiatives are being launched by government associations to educate patients regarding different treatment options available. For example, the American Academy of Neurology (AAN) has designed numerous guidelines for starting, switching, and stopping disease-modifying therapies (DMTs) for adults with MS.
Various governments of countries such as the U.S., the U.K., and others have laid recommendations on the usage of various drugs available for treatment of MS. In June 2018, for instance, the National Institute of Health and Care Excellence (NICE) released recommendations for the use of beta interferons such as Avonex, Betaferon, Extavia, Rebif, and glatiramer acetate (Copaxone). Such recommendations and treatment guidelines will make patients aware of the various treatment options available, which is one of the key reasons driving the market growth.
High Cost of Drugs to Hamper Demand for these Drugs
Despite increased government interventions and various treatment options for multiple sclerosis, the cost of drugs remains a major challenge for the growth of the market. The high pricing of the drugs makes it inefficient in addressing the unmet needs of affected populations. Moreover, it also adds to the economic burden globally due to increased out-of-pocket expenses.
DMTs are considered to be a highly effective treatment option. However, a significant rise in the out-of-pocket costs for DMT is leading to lower adherence and improper disease management. According to the National Multiple Sclerosis Society, the price of MS medication is rising gradually. From 2013 to 2018, the median price increased by more than US$ 20,000. Furthermore, the Bipartisan Budget Act of 2018 modified the Medicare rules, increasing the discount offered on the branded drugs by the manufacturers. This resulted in increasing out-of-pocket expenses of the patients who use certain generic drugs such as glatiramer acetate. This steady increase in the costs associated with MS treatment is anticipated to hamper the growth.
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New Product Launches to Accelerate the Growth of Immunomodulators Segment
On the basis of drug class, the market is segmented into immunomodulators, immunosuppressants, interferons, and others. The immunomodulators segment dominated the market share in 2020 and is estimated to lead the market throughout the forecast period. More treatment options within immunomodulators, new product launches for multiple sclerosis drugs, and higher demand are the factors responsible for its growth. Furthermore, the FDA approval of Mayzent in March 2020 is likely to propel the growth of the immunomodulators segment in the forecast period.
The immunosuppressants segment is anticipated to witness substantial market growth during the forecast period owing to an increasing number of companies focusing on the development of multiple sclerosis drugs. For instance, in September 2019, Merck, announced the presentation of new data for MAVENCLAD (cladribine tablets), which further characterize the long-term efficacy and safety profile. This data is also being shared at the 35th Congress of the European Committee for Treatment and Research in Multiple Sclerosis (ECTRIMS).
Launch of Zeposia to Favor the Oral Segment
Based on the route of administration, the market is bifurcated into oral and injection. The injection segment is further segmented into intramuscular, subcutaneous, and intravenous. This segment accounted for maximum market share in 2020, owing to the rising prevalence of the condition and active government recommendations. Furthermore, intensified research on humanized monoclonal antibodies is likely to augment the growth of the injection segment.
The launch of new products and shift towards oral drugs are the key factors contributing to the expansion of the oral segment. In January 2020, Bristol Myers Squibb announced the launch of Zeposia, which is now the lowest-priced oral drug available for MS in the market. According to the company estimates, the drug has the potential to reach peak sales of USD 5.0 billion in the coming years. This is likely to give significant momentum to the oral segment during the forecast period.
Hospital Pharmacy to Dominate the Market
In terms of distribution channel, the market is segmented into hospital pharmacy, retail pharmacy, and online pharmacy. The hospital pharmacy segment is anticipated to dominate the market throughout the forecast period owing to favorable health reimbursement and increased government efforts to strengthen the government hospital pharmacies.
Growth of the retail pharmacy segment is likely to propel owing to the increasing number of retail channels for prescription drugs. The online pharmacy segment is poised to surge owing to the rapid adoption of e-pharmacy during the COVID-19 pandemic and the easy availability of the drugs for the treatment of MS.
North America Multiple Sclerosis Drugs Market Size, 2020 (USD Billion)
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The market size in North America stood at USD 15.30 billion in 2020. Primary factors responsible for the region’s dominant hold on the multiple sclerosis drugs market share include increasing R&D investment, new product launches, and rising demand for immunosuppressants. In addition, initiatives to generate awareness regarding the treatment and diagnosis of MS are actively undertaken by governments in the region. In the U.S., the month of March is recognized as Multiple Sclerosis Awareness Month, which is supported by government associations such as the Multiple Sclerosis Association of America through educational activities. This is anticipated to fuel the MS treatment market in North America.
Europe is estimated to be the second-most prominent region in terms of revenue by 2028, owing to the active government recommendations and favorable health reimbursement policies. Moreover, increasing prevalence of the condition across the region will further boost product demand, thus augmenting the market growth.
Asia Pacific is likely to register the highest CAGR during the forecast period, attributable to the improved distribution networks of pharmaceutical companies in emerging economies. Also, the collaboration of Biogen and Eisai Co., Ltd. in January 2018 to co-promote Tecfidera, Tysabri, and Avonex in Japan is further expected to accelerate the multiple sclerosis treatment market growth in Asia Pacific.
In the Middle East & Africa and Latin America, the market is projected to expand owing to the rising prevalence of neurological diseases and improving healthcare spending.
High Sales of Tecfidera and Gilenya to Render Leading Position to Biogen and Novartis AG
In terms of revenue, Biogen has emerged as a leading player on account of the surging sales of Tecfidera in 2020 and strategic partnerships for increased distribution of drugs. Novartis AG is ranked second in the market due to the high demand for Gilenya. It is also expected to benefit from the National Institute for Health and Care Excellence’s (NICE) decision in 2018 to recommend Extavia among other beta interferon drugs Avonex, Betaferon, and Rebif for the treatment of relapsing-remitting and secondary progressive multiple sclerosis. However, Roche’s Ocrevus is giving close competition to Gilenya in terms of revenue. This, coupled with the U.S. patent expiry of Tecfidera in 2020, is expected to strengthen the market position of Roche.
An Infographic Representation of Multiple Sclerosis Drugs Market
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The global multiple sclerosis drugs market report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product/service types, and leading applications of the product. Besides, 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 over recent years. The report provides various key insights such as prevalence of MS, regulatory and reimbursement market overview, pipeline analysis, patent snapshot, new product launches, and key industry developments such as mergers, acquisitions, and partnerships.
Value (USD Billion)
Drug Class, Route of Administration, Distribution Channel, and Geography
By Drug Class
By Route of Administration
By Distribution Channel
The value of the global market was USD 26.05 billion in 2020.
Fortune Business Insights says that the market is projected to reach USD 41.99 billion by 2028.
The value of the market in North America was USD 15.30 billion in 2020.
The market is projected to rise at a CAGR of 6.3% during the forecast period (2021-2028).
Immunomodulators are the leading segment in this market.
Significant R&D investment and proactive government support and recommendations are the key factors driving the market.
Biogen and Novartis AG are the top players in the market.
North America is expected to hold the highest market share.
Shift towards monoclonal antibodies for MS treatment is the key trend in the market.
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