Los Angeles, CA (PRWEB) May 25, 2013
IBISWorld estimates that revenue for the Cell Therapy industry will grow at an average annual rate of 28.7% to $ 1.0 billion in the five years to 2013, including growth of 17.9% in 2013. From 2002 and 2008, no new cell therapy products were introduced, according to IBISWorld industry analyst Kevin Culbert, causing relatively modest growth during that period. In the years since, however, the Food and Drug Administration (FDA) has approved six new products. This factor contributed to the industry’s fast growth during the five years to 2013.
In 2011, the release of Dendreon’s Provenge contributed to revenue growth of 59.5% during the year. The product got a significant boost when Medicare announced that it would cover the cost of reimbursement. In spite of this, the treatment’s reception was expected to be considerably greater. Slow adoption was partially caused by the treatment’s high sticker price (due to its high cost of development), a factor that has led many doctors to use alternative treatments, Culbert says. Industry operators have spent billions of dollars trying to develop a blockbuster treatment that will yield billions of dollars in return. Wage costs contribute significantly to the Cell Therapy industry s high operational costs. In 2013, for example, wages alone are expected to represent 118.5% of industry revenue, causing the industry to operate at a loss throughout its existence.
During that time, industry operators will benefit from the research and development (R&D) that has taken place over the past five years and the clinical trials that are currently in place. The industry will also benefit from the FDA’s Safety and Innovation Act, which was signed into law in July 2012. The act will accelerate the approval process for drug manufacturers, including regenerative medicine products. In spite of this factor, industry firms are expected to continue operating at a loss over the next five years as vast sums of money are poured into R&D. In addition to Dendreon, current major players include Shire Pharmaceuticals, Organogenesis Inc. and NuVasive Inc.
The Cell Therapy industry has a high level of market share concentration. Given that the industry is in the growth stage of its life cycle and it typically takes a number of years to bring a product to market, there is a large number of smaller companies in the industry that are still in the product development stage and awaiting FDA approval. There are currently only about 40 cell therapy products available on the commercial market, according to the Alliance for Regenerative Medicine’s annual report. Consequently, market share concentration is expected to decrease over the next five years as new products are introduced to the commercial market. For more information, visit IBISWorlds Cell Therapy in the US industry report page.
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IBISWorld industry Report Key Topics
This industry engineers human tissue, also known as cell therapy or regenerative medicine. Tissue engineering is the use of a combination of cells, engineering and materials methods, and suitable biochemical and chemical factors to improve or replace biological functions. Key functions include repairing or replacing tissues (e.g. bone, cartilage, blood vessels and skin).
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About IBISWorld Inc.
Recognized as the nations most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.
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