Diabetes type 2: juicy bite for Big Pharma. Part 3

(Former posts are here and here.)

From an advertisement (Metabolic Disorders Therapeutics Market to 2017), very interesting numbers for diabetes and obesity:

The global diabetes diseased population in 2010 was estimated at 58 million, while in the same year, the obesity diseased population was estimated at 203 million and the dyslipidemia diseased population was estimated at 259.1 million. Nevertheless, in 2010, the diabetes market accounted for 95% of the global metabolic disorders therapeutics market. The major reason for the significant market share related to diabetes is the failure of anti-obesity drugs in proving their efficacy and safety. Other existing drugs in the market are also associated with severe side effects, resulting in poor utilization by obesity patients. The diabetes market has witnessed product failures as well.

The global metabolic disorders therapeutics market is attractive despite product failures. The major factor driving the growth of the market is the rising incidence of obesity and the diabetes diseased population in key markets such as the US, the UK and Germany. It is forecasted that the metabolic disorders therapeutics market will grow at a CAGR (Compound Annual Growth Rate) of 3.1% between 2010 and 2017. The market would be primarily driven by the rising prevalence rates and the market entry of new products.

Well, not bad – the market is really huge...

The metabolic disorders therapeutics mergers and acquisition (M&A) landscape is moderately active, as only a few major pharmaceutical companies and medium players are looking for strategic partnerships with companies that have promising drugs either in the pipeline or in the market. In 2008-2009, a total of 35 M&A and licensing deals took place. Most of the M&A and licensing deals involved companies active in the diabetes market. The diabetes market needs drugs which are easier to administer and the obesity market requires drugs which do not have serious side effects.

This unmet need and the growth potential are driving the deals activity in the industry. The major acquisition activity that took place in 2008-2009 was GlaxoSmithKline's (GSK) acquisition of Sirtris Pharmaceuticals. The acquisition considerably added to the pipeline potential of GSK in the diabetes market. Licensing activities involving approved products such as Januvia and Galvus (vildagliptin) and Phase III products such as Oral-lyn will have an impact on the market.