Market Research Report
Australian Pharmaceuticals Market - Growth, Trends, Covid-19 Impact, and Forecasts (2021 - 2026)
|Published by||Mordor Intelligence Pvt Ltd||Product code||995768|
|Published||Content info||90 Pages
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|Australian Pharmaceuticals Market - Growth, Trends, Covid-19 Impact, and Forecasts (2021 - 2026)|
|Published: March 1, 2021||Content info: 90 Pages||
The Australian Pharmaceutical Market is estimated to be valued at USD 25,250 million in 2020 and is expected to reach USD 28,750 million in 2026, witnessing 2.1% CAGR growth over the forecast period.
Most of the pharmaceutical and biotechnological companies had shifted their focus towards R&D departments in identifying new molecules or leads for the treatment of this disease, which is in the final phase of clinical trials. In January 2021, the Therapeutic Goods and Administration approved the COVID-19 vaccine developed by Pfizer and BioNTech. In addition to this, the Australian government has gone under nearly 4 agreements where it has invested around AUD 3.3 billion in this agreement in order to support the supply of vaccines in the country. Furthermore, the country invested around AUD 363 million into research and development activities related to the prevention and treatment of COVID-19. Such developments are further expected to accelerate the market growth due to COVID-19.
The major factors driving the market growth during the forecast period are the growing burden of chronic diseases and the rising geriatric population along with the rising investments into research and development expenditure for novel therapeutics in Australia. According to the GLOBOCAN, in 2020 nearly 200,021 new cases of cancer were diagnosed with cancer in Australia.
Furthermore, the burden of diabetes has also increased in the country. As per the data of the International Diabetes Federation, in 2020, about 1,288,300 people in Australia are suffering from diabetes. As a result, many of the companies are developing new solutions for the treatment of these diseases which is expected to drive the market studied. For instance, in October 2020, Therapeutic Goods and Administration approved Truvelog developed by Sanofi SA in the treatment of type 2 diabetes mellitus. Thus, a positive growth is expected in the Australia Pharmaceuticals Market over the forecast perod.
Due to the emergence of COVID-19, the healthcare expenditure in Australia increased with the rising cases of COVID-19. The healthcare expenditure is expected to rise in the year 2020, owing to the rising cases of COVID-19 and the increasing demand for drugs related to the treatment of COVID-19. As per the Australian Institute of Health and Welfare, the Australian government would be spending over AUD 115.5 billion in 2020-2021. Hence, a significant increase in healthcare expenditure can be expected in the year 2020.
Furthermore, in 2018-19, overall healthcare spending in Australia was estimated to be AUD 195.7 billion, or AUD 7,772 per capita. Overall, healthcare expenditure is expected to constitute 10 % of Australia's GDP, an increase from 8.3% in the year 2000-01. Health expenditure in Australia is jointly funded by public and private sources and by individuals.
Governments contribute 68% of total health funding in the country. Private insurance accounts for just over 8% of total health funding. Just over 20% of total health funding is being paid directly by individuals. Two-thirds of the overall healthcare spending was covered by the Government of Australia and the Governments of the State and Territories. As per the Organization Economic Co-operation and Development, Australia is one of the leading countries which has a high level of spending on private health insurance. Private health insurance contributes between 4% and 10% in the total healthcare expenditure.
The Australian Prescription Drugs category is expected to reflect the largest proportion in the predicted period. The outbreak of COVID-19 is expected to positively impact prescription drugs as new drugs are being discovered for the treatment of COVID-19. In July 2020, Therapeutics Goods and Administration provisionally approved Veklury, developed by Gilead Sciences Pty Ltd. in the treatment of COVID-19. Hence, this is expected to support the market growth in this segment.
A prescription drug is a pharmaceutical drug that legally requires a medical prescription to be dispensed. The growing product launches in the market are expected to flourish the market growth. For instance, in September 2020, GW Pharmaceuticals introduced EPIDYOLEX for the treatment of seizures that are associated with Lennox-Gastaut syndrome.
Furthermore, the Australian government announced a new USD 56.6 million in 2019-2020, Genomics Health Futures Mission focusing on the new clinical trials and technology development, giving an investment opportunity for both the businesses and research organizations. Therefore, with the above-mentioned factors the market is expected to propel during the forecast period.
The Australia pharmaceutical market is highly competitive and consists of several major players. In terms of market share, few of the major players are currently dominating the market. And some prominent players are vigorously making acquisitions and joint ventures with the other companies to consolidate their market positions in the country. Some of the Key companies which are currently dominating the market are Abbvie Inc., Amgen Inc., Pfizer Inc., and CSL Limited