North America Diabetes Drugs Market Analysis

North America Diabetes Drugs Market Executive Summary

The North America diabetes drugs market size was valued at $4.69 Bn in 2022 and is estimated to expand at a compound annual growth rate (CAGR) of 5.1% from 2022 to 2030 and will reach $6.99 Bn in 2030. In 2020, the United States spent an estimated $4 trillion on healthcare, which represents approximately 18% of the country's gross domestic product (GDP). This is significantly higher than any other country in the world. The high cost of healthcare in the US is driven by a combination of factors, including high drug prices, administrative costs, and the prevalence of chronic diseases like diabetes and heart disease. In 2019, Canada spent approximately $190 Bn on healthcare, which represents approximately 11% of the country's GDP. Healthcare spending in Canada is primarily funded through taxes, and the government provides universal coverage for all Canadian citizens and permanent residents.

The prevalence of diabetes in the US is high, with an estimated 34.2 Mn people, or 10.5% of the population, living with the disease, according to the Centers for Disease Control and Prevention (CDC). This includes both diagnosed and undiagnosed diabetes. The incidence of diabetes is also increasing in North America, driven by factors such as aging populations, unhealthy lifestyles, and obesity. In the United States, for example, the number of people with diabetes is expected to increase by more than 50% by 2050, according to the Centers for Disease Control and Prevention. As the prevalence and incidence of diabetes continue to rise, there is a high demand for effective treatments. This includes a range of medications, devices, and lifestyle interventions designed to manage blood sugar levels and prevent complications. Diabetes is also associated with a significant economic impact in North America. The American Diabetes Association estimates that the total economic cost of diabetes in the United States is over $327 Bn per year, including direct medical costs and lost productivity. Therefore, the diabetes drugs market will grow in North America during the forecast period.

Market Dynamics

Market Growth Drivers Analysis

Growth in the number of people with diabetes: The prevalence of diabetes in North America is increasing, which is driving growth in the diabetes drugs market. According to the International Diabetes Federation, approximately 47 Mn people in North America have diabetes, and this number is expected to continue to rise.

Increasing use of combination therapies: Combination therapies, which combine multiple medications into a single pill, are becoming increasingly popular for the treatment of diabetes. These therapies can help to simplify treatment regimens and improve patient adherence to medication.

Focus on cardiovascular outcomes: There is a growing focus on cardiovascular outcomes in the treatment of diabetes, as cardiovascular disease is a major complication of the disease. Many diabetes drugs are being developed with a specific focus on reducing the risk of cardiovascular events.

Increased emphasis on personalized medicine: Personalized medicine, which involves tailoring treatment to an individual's specific characteristics, is becoming increasingly important in the treatment of diabetes. Advances in genomics and other technologies are allowing for more targeted and precise treatment approaches.

Increasing competition from biosimilars: Biosimilars, which are generic versions of biologic drugs, are becoming more prevalent in the diabetes drugs market. This is leading to increased competition and potentially lower prices for diabetes medications.

Market Restraints

Treatments for diabetes, especially more recent medications, can be highly expensive. Those who cannot afford to pay for these therapies may have less access to care, which could have a negative impact on their health. Also, once the patents on the current diabetic treatments expire, generic drugs will become more competitive, which may result in cheaper prices for these drugs. This may have an impact on pharmaceutical companies' investment in research and development as well as their ability to generate income.

Also, the rules governing the approval and marketing of diabetic medications can be extremely tight, which may affect the time and expense needed to introduce novel treatments to the market. As a result, fewer novel medications may be made available to patients. Moreover, some diabetes medications might have serious adverse effects that limit their use or decrease patient adherence. This may reduce the efficacy of these treatments and their ability to generate income.

Furthermore, there are alternative therapies for diabetes, including lifestyle modifications such as exercise and diet changes. These options may be preferred by some patients and can limit the demand for diabetes drugs. There is also complementary and alternative therapy for diabetes, such as dietary and activity adjustments. Some individuals may favor these solutions, which can reduce the requirement for diabetes medications.

Competitive Landscape

Key Players

• Johnson & Johnson
• Bayer Pharmaceuticals
• Novo Nordisk
• Sanofi
• Merck
• Eli Lilly and Company
• AstraZeneca
• Takeda Pharmaceutical Company Limited
• Biocon ltd
• Bristol-Myers Squibb
• Boehringer Ingelheim
• Novartis
• GlaxoSmithKline
• Lupin ltd
• Piramal healthcare ltd
• Ranbaxy laboratories ltd.

Recent developments

May 2022: The Mounjaro (tirzepatide) injection from Eli Lilly and Company was approved by the US Food and Drug Administration (FDA) as a supplement to diet and exercise to improve glycemic control in adult patients with type 2 diabetes. Mounjaro, a single molecule, is a once-weekly glucagon-like peptide-1 (GLP-1) and glucose-dependent insulinotropic polypeptide (GIP) receptor agonist.

March 2022: According to Oramed, ORMD-0801 (a novel molecule) is being tested in two important Phase 3 clinical trials and may be the first oral insulin capsule with the most practical and secure method of administering insulin therapy. This medication is anticipated to revolutionize the markets for oral anti-diabetes medications and insulin. Moreover, Oramed is creating a tablet form of the GLP-1 (glucagon-like peptide-1) mimic (ORMD-0901).

Healthcare Policies and Regulatory Landscape

Policy changes and Reimbursement scenario

In North America, the regulation and reimbursement of diabetes drugs is managed by various government agencies, such as the US Food and Drug Administration (FDA), Health Canada, and the Centers for Medicare and Medicaid Services (CMS). Here are some key points about diabetes drug regulation and reimbursement in North America:

FDA and Health Canada approval: In the United States and Canada, diabetes drugs must be approved by the FDA and Health Canada, respectively, before they can be marketed and sold in those countries. The approval process involves rigorous testing to ensure the safety and efficacy of the drugs.

Coverage and reimbursement: The coverage and reimbursement of diabetes drugs in North America is largely determined by public and private health insurance plans, such as Medicare and Medicaid in the US, and provincial health insurance plans in Canada. These plans may have specific criteria for coverage, such as the severity of the patient's diabetes and the type of drug prescribed.

Cost-sharing: Patients in North America may also be responsible for some of the cost of diabetes drugs, depending on their insurance coverage. This can include deductibles, co-pays, and co-insurance.

FDA post-market surveillance: The FDA also conducts post-market surveillance of diabetes drugs to ensure their continued safety and efficacy. This includes monitoring adverse events reported by patients and healthcare providers, as well as conducting additional studies to evaluate the long-term effects of the drugs.

Health technology assessments: In Canada, health technology assessments are often used to evaluate the value and cost-effectiveness of new drugs, including diabetes drugs. These assessments may influence whether a drug is approved for coverage and reimbursement by provincial health insurance plans.