Introduction
VABYSMO, developed by Roche, has been a game-changer in the treatment of retinal diseases, particularly wet age-related macular degeneration (AMD) and diabetic macular edema (DME). Since its FDA approval in January 2022, VABYSMO has shown remarkable market performance and financial growth.
FDA Approval and Market Entry
VABYSMO, known by its generic name faricimab-svoa, was approved by the U.S. FDA in January 2022 for the treatment of wet AMD and DME. This approval marked a significant milestone in the retinal biologics market, introducing a bispecific antibody that blocks both vascular endothelial growth factor A (VEGF-A) and angiopoietin-2 (Ang-2)[3][4].
Market Performance
Sales Figures
In its first year on the market, VABYSMO achieved blockbuster status with sales of 591 million Swiss francs ($685 million) in 2022. This success continued into 2023, with sales rising to 2.4 billion Swiss francs ($2.8 billion). For 2024, analysts forecast sales to reach $3.7 billion, and by 2030, sales are expected to climb to $7.7 billion[1][4].
Quarterly Sales
In the first quarter of 2024, VABYSMO generated $927 million in sales, demonstrating its strong market presence despite competition from Regeneron's Eylea HD[4].
Competitive Landscape
Competition with Eylea HD
The launch of VABYSMO has significantly impacted the market share of Regeneron's Eylea, a well-established VEGF-A inhibitor. Sales of the original Eylea decreased by 6% and 7% in the first and second quarters of 2023, respectively, as VABYSMO gained market share. However, Regeneron's introduction of Eylea HD in August 2023 helped maintain the overall Eylea franchise revenues at a similar level to the previous year[1].
Market Share Projections
GlobalData analysts predict that Roche's VABYSMO and Regeneron's Eylea HD will together capture more than 60% of the vascular endothelial growth factor A therapy market by 2030. Combined, these drugs are expected to generate $13.2 billion by 2030[1].
Financial Impact on Roche
Revenue Contribution
VABYSMO has been a significant contributor to Roche's pharmaceutical division revenues. In 2023, the growing demand for VABYSMO, along with other key products like Ocrevus, Hemlibra, Polivy, and Phesgo, added an additional CHF 4.3 billion (approximately $4.7 billion) to Roche's sales[5].
Marketing and Distribution Costs
The successful launch of VABYSMO has also led to increased marketing and distribution costs for Roche, reflecting the company's investments in ongoing product launches. These costs increased by 6% in 2023, contributing to the overall growth strategy of the company[5].
Royalty Interests and Partnerships
XOMA Corporation
XOMA Corporation, a biotech royalty aggregator, has benefited from VABYSMO's success. In 2023, XOMA received $7.3 million in cash payments from Roche related to VABYSMO sales. This royalty income is part of XOMA's strategy to build a strong cash position and drive long-term shareholder value[2].
Market Drivers
Prevalence of Retinal Diseases
The global retinal biologics market is driven by the increasing prevalence of vision problems and diabetic retinopathy. According to the World Health Organization (WHO), around 2.2 billion individuals worldwide have distant or near vision problems, and this number is expected to grow. The launch of drugs like VABYSMO is anticipated to boost market growth in this segment[3].
Technological Advancements
The introduction of bispecific antibodies like VABYSMO, which target both VEGF-A and Ang-2, represents a significant technological advancement in the treatment of retinal diseases. This dual-action mechanism has been a key factor in VABYSMO's success and market adoption[3][4].
Future Projections
Sales Forecasts
Analysts forecast that VABYSMO sales will continue to rise, reaching $3.7 billion in 2024 and $7.7 billion by 2030. These projections are based on the drug's current market performance and the growing demand for effective treatments for retinal diseases[1][4].
Market Growth
The global retinal biologics market is expected to grow at a compound annual growth rate (CAGR) of 7.91% from 2024 to 2030, driven by the launch of new drug products and rising market competition. VABYSMO is poised to be a major player in this growing market[3].
Key Takeaways
- Blockbuster Status: VABYSMO achieved blockbuster status in its first full year on the market.
- Sales Projections: Forecasted sales of $3.7 billion in 2024 and $7.7 billion by 2030.
- Market Share: Expected to capture more than 60% of the VEGF-A therapy market with Eylea HD by 2030.
- Financial Impact: Significant contributor to Roche's pharmaceutical division revenues.
- Royalty Interests: Generated $7.3 million in cash payments for XOMA Corporation in 2023.
- Market Drivers: Driven by the prevalence of retinal diseases and technological advancements.
FAQs
What is VABYSMO used for?
VABYSMO is used for the treatment of wet age-related macular degeneration (AMD) and diabetic macular edema (DME).
When was VABYSMO approved by the FDA?
VABYSMO was approved by the FDA in January 2022.
How much did VABYSMO generate in sales in 2023?
VABYSMO generated $2.8 billion in sales in 2023.
What is the forecasted market share of VABYSMO and Eylea HD by 2030?
Together, VABYSMO and Eylea HD are expected to capture more than 60% of the VEGF-A therapy market by 2030.
How does VABYSMO differ from other treatments like Eylea?
VABYSMO is a bispecific antibody that blocks both VEGF-A and Ang-2, whereas Eylea is a VEGF-A inhibitor.
Sources
- Biospace: Roche and Regeneron Square Off in Lucrative Eye Disease Market
- GlobeNewswire: XOMA Reports Fourth Quarter and Full Year 2023 Financial Results
- Grand View Research: Retinal Biologics Market Size, Share & Growth Report, 2030
- Pharmaceutical Technology: Roche's VABYSMO has successful Q1 sales despite Regeneron
- Roche: Finance Report 2023
