Market Trends of Australia Pharmaceuticals Industry
The Prescription Drugs Segment Holds the Largest Share and is Expected to do so in the Forecast Period
Prescription drugs are available with a valid prescription from a prescriber. These drugs are heavily regulated and require a visit to a doctor, a diagnosis, and monitoring by a doctor to ensure the medication is working and that it is working safely.
According to the November 2021 report of the Australian Institute of Health and Welfare (AIHW), about 16% of the total Australian population was of age 65 years and more, and the older population is on the rise. The rising geriatric population is expected to fuel the market growth as they are more prone to various chronic diseases such as cancer, cardiovascular diseases, musculoskeletal diseases, and others. The increasing burden of chronic diseases is one of the key factors fueling the demand for therapeutic drugs which will boost the market. In addition, the launch of new drugs in the country requiring a doctor's prescription is expected to positively contribute to the segment's growth. For instance, in January 2022, Australia's drug regulator approved two prescription drugs for the treatment of COVID-19, Lagevrio by Merck and Paxlovid from Pfizer.
Moreover, technological advancements in the segment with the purpose to ease the prescription process will also drive the market. For instance, in February 2022, the Australian Capital Territory Government launched Canberra Script, a real-time prescription monitoring system to enable medical professionals to assess patients' drug history before prescribing and dispensing some medications. It is being implemented to help address the increasing harms caused by some prescription medications, particularly opioids.
Therefore, due to the aforementioned factors, the prescription drugs segment is expected to have a significant market share in the pharmaceutical market in Australia over the forecast period.
Generic Drugs are Expected to Witness Strong Growth in Coming Years
A generic drug is a medication created to be the same as an already marketed branded drug in dosage form, safety, strength, route of administration, quality, performance characteristics, and intended use.
The use of generic drugs in Australia is continuously rising due to their cost-effectiveness and the presence of pharmaceutical companies that develop such generic medicines. Additionally, the key steps taken by the Australian government play a crucial role in the demand for generic medicine. For instance, in March 2022, the Indian and Australian governments signed an agreement through which Indian pharmaceutical companies will get easy access to the Australian market for launching their products. The Therapeutic Good Administration (TGA) of Australia agreed to expedite faster and easier approval for the drug developed by Indian pharmaceutical companies. With such agreements, the segment is expected to witness strong growth in the coming years.
Furthermore, new launches of generic drugs in Australia are accelerating segment growth. For instance, in March 2022, TiefenbacherPharmaceuticals successfully launched the first generic version of the Epilepsy medicine Lacosamide in Australia. Lacosamide is used for the treatment of seizures in patients suffering from epilepsy. The tablets are being marketed in Australia in the strengths 50mg, 100mg, 150mg, and 200mg. With the launch of such drugs for crucial diseases, the genetic drug demand is expected to witness a significant hike in the coming years across the country.
