US Addiction Therapeutics Market Analysis

US Addiction Therapeutics Market Executive Summary

US addiction therapeutics market was valued at $4242 Mn in 2022 and is estimated to reach $6220 Mn in 2030, exhibiting a CAGR of 4.9% during the forecast period.

Addiction therapeutics implies the different extent of systems, interventions, and methodologies used to address and battle against habit. It expressly focuses on treating people with dependence and co-occurring issues by reducing or ending prescription and alcohol use. Effective addiction treatment often involves an individualized, holistic approach that considers the individual's unique circumstances, history of substance use, co-occurring disorders, and social support network.

Nearly half of all people 12 and older in the United States have used an illicit substance at least once. Since 2000, nearly 1 Mn people have died of a drug overdose, and as of 2020, over 37 Mn people aged 12 and older actively used illicit substances. 25.4% of all users of illicit drugs suffer from drug dependency or addiction. Of the nearly 140 Mn people 12 and older who drink alcohol, over 20% suffer from alcohol abuse or addiction. Drug abuse and addiction cost the United States over $700 Bn annually in healthcare expenses, crime-related costs, and lost workplace productivity. About 50% of individuals with a diagnosed mental illness will also struggle with substance abuse at some point in their lives, and vice versa.

Several groups, such as the Centres for Disease Control and Prevention, have taken steps to raise awareness about addiction by helping people who are addicted to smoking to quit with the help of Chantix and Zyban. Now that digital technologies like "Restore Application," which is a mobile medical application that provides cognitive behavioural therapy for people with substance use disorder, are linked to the management of the disorder,. It is expected to have a good impact on the market. For example, the US Food and Drug Administration approved the commercialization of the first mobile medical application to help treat substance use disorders. The "Restore App" is intended for outpatient use in the treatment of alcohol, cocaine, marijuana, and substance use disorders.

Important developments have been observed among major competitors in the market for addiction therapeutics. Sublocade is a novel long-acting buprenorphine implant intended for treating opioid use disorder. Indivior received FDA approval for this product, providing patients with a more comfortable treatment alternative that may increase adherence and improve treatment outcomes.

Market Dynamics

Market Growth Drivers

High consumption of alcohol, tobacco, and opioid products:The maximum usage of liquor, tobacco, and narcotics drives the development of the addiction therapeutics market. The prevalence of substance use disorders has increased as a result of the high consumption of these substances. Subsequently, the maximum usage of these substances expands the predominance of addiction therapeutics, accordingly driving market development.

Rising Awareness about Addiction Therapeutics: The quantity of individuals undertaking medicines for addictions has expanded lately. Subsequently, the rising mindfulness among individuals about illicit drug use treatment is probably going to help the development of the dependence therapeutics market before very long. Also, mindfulness missions and government endeavours to neutralize illicit drug use and advance prescriptions for a wide range of fixation medicines would fuel market development.

Government and healthcare support: Greater recognition of addiction as a public health problem forces governments and health systems to allocate more resources, funding, and support to addiction treatment and rehabilitation programs. During National Addictions Awareness Week, the Minister of Mental Health and Addictions and Associate Minister of Health announced over $15 million in federal funding for 24 projects across Canada through Health Canada's Substance Use and Addictions Program (SUAP). This support helps expand and improve services for those in need of addiction treatment.

Market Restraints

Resource Constraints: Due to the limitations in resources available for addiction therapeutics, it acts as a growth restraint for the addiction therapeutics market. There is a lack of skilled healthcare workers in addiction therapeutics, which slows down the availability of these services, hindering the growth of the market. Due to these gaps in resource availability, patients find it difficult to receive timely and effective care.

Stigma and Discrimination: The ongoing societal stigma associated with addiction feeds the shame and denial that keep people from getting treatment. Many people are unable to receive treatment services because they fear discrimination and judgment, which results in underutilization. This stigma impedes not only personal healing but also the larger public health issue of substance dependence. Improving treatment access and market expansion require lowering stigma and encouraging a more sympathetic and understanding attitude toward addiction.

Growing Cost of Treatment: Increased costs of treatment processes hinder market growth. Many players in the market are making huge investments in the production of new and improved treatments to speed up the recovery process, and on the other hand, costs are increasing.

Notable Recent Updates

• May 2021, JB Chemicals & Pharmaceuticals Ltd. (JBCPL) launched NOSMOK prescription-medicated nicotine lozenges on "World No Tobacco Day" as part of a 360 Tobacco Cessation initiative. These lozenges will help reduce the desire to use tobacco.
• June 2021, Indivior plc and Aelis Farma announced a strategic partnership and option-license agreement to address the significant repercussions of cannabis use disorders (CUD), including cannabis-induced psychosis (CIP).

Healthcare Policies and Regulatory Landscape

SAMHSA (Substance Abuse and Mental Health Services Administration): The Substance Abuse and Mental Health Services Administration (SAMHSA) is an agency of the US Department of Health and Human Services (HHS) that guides public health efforts to contribute to the nation's behavioural health and help people with mental health problems lead a better life. Congress has taken steps in the recent Consolidated Appropriations Act, 2023, that influence the federal requirements for Drug Enforcement Administration registrants, which also include those associated with opioid use disorder treatment.

Drug Enforcement Administration (DEA): The DEA imposes federal laws that are related to controlled substances and controls their manufacture and distribution. It has an important role in impeding the illegal use of drugs that are used in treatment for addiction.

Food and Drug Administration (FDA): FDA controls the approval, manufacturing, and labelling of the drugs that are used in treating addiction. It reviews and approves drugs to treat substance use disorders, ensuring they meet safety standards and effectiveness before they are sent in the market for clinical use.

Mental Health Parity and Addiction Equity Act of 2008: This act compels insurance coverage for mental health conditions, including substance use disorders. In December 2020, Congress enacted within the Consolidated Appropriations Act new provisions that necessitate insurers and health plans to execute comparative analyses to communicate that they comply with the care provisions of MHPAEA.

Medicaid: Medicaid is federal and state-funded insurance coverage for low-income adults, children, and the disabled population, which gives them access to affordable health care. Addiction therapeutic services are covered under Medicaid. It is the largest payer of addiction therapeutic services in United States.

Competitive Landscape

Key Players

• Pfizer
• Sun Pharmaceutical Industries
• Teva Pharmaceutical Industries
• Titan Pharmaceutical
• Indivior
• Novartis
• Cipla
• Mylan
• Glenmark
• Alkermes