Overview of Absorica
Absorica, a brand of isotretinoin, is a powerful oral retinoid used primarily for the treatment of severe acne, including nodular and conglobate acne. It is marketed by Cipher Pharmaceuticals in collaboration with Sun Pharmaceutical Industries.
Market Size and Growth
The global isotretinoin drugs market, which includes Absorica, is projected to grow significantly over the next few years. As of 2023, the market size was valued at USD 1,337 million and is expected to reach USD 2,053 million by 2031, growing at a Compound Annual Growth Rate (CAGR) of 4.88% from 2024 to 2031[3][4].
Regional Market Performance
North America
North America is the largest contributor to the global isotretinoin drugs market, driven by a well-developed healthcare infrastructure, favorable government regulations, and a high prevalence of skin problems such as acne. The region is anticipated to grow at a CAGR of 5.26% during the forecast period. The high demand for acne treatments, particularly among young adults, is a significant factor in this growth[4].
Europe
Europe is expected to grow at a CAGR of 3.84% over the forecast period. The growth in this region is attributed to the rising cases of genetic disorders and skin cancer, along with increasing healthcare spending and awareness of illnesses. In the UK, for instance, isotretinoin can only be prescribed by experienced consultant dermatologists, which ensures a controlled and monitored market[4].
Asia-Pacific
The Asia-Pacific region is the fastest-growing market for isotretinoin drugs, driven by the presence of several key players such as Sun Pharma and Dr. Reddy's Laboratories. The increasing demand for isotretinoin in India and other countries in the region, coupled with rising healthcare investments, is propelling the market forward[4].
Sales Performance of Absorica
Historical Sales Data
In the second quarter of 2021, Cipher Pharmaceuticals reported significant growth in revenue driven by Absorica. Licensing revenue from Absorica in the U.S. increased by $0.5 million or 25% to $2.4 million compared to the same period in 2020. However, the market share of Absorica and its authorized generic version decreased to approximately 4.2% from 6.5% in the previous year[1].
In the first quarter of 2022, licensing revenue from Absorica in the U.S. decreased by $0.9 million or 39% to $1.4 million, largely due to the absence of full-quarter brand Absorica sales in Q1 2022. Despite this, the market share remained relatively stable at approximately 4.3%[2].
Market Share and Competition
Absorica's market share, including Sun Pharma's Absorica LD®, was around 6.2% in Q2 2021 and 5.2% in Q1 2022. The competition in the isotretinoin market is intense, with multiple generic versions available, which can impact Absorica's market share and pricing[1][2].
Drivers of Growth
Increasing Demand for Acne Treatment
The rising prevalence of severe acne, particularly among teenagers and young adults, is a significant driver of the isotretinoin market. According to recent studies, severe acne affects a substantial portion of this demographic, leading to a high demand for effective treatments like Absorica[4].
Improvements in Side Effects Management
Advancements in managing the side effects of isotretinoin have made it a more viable option for patients, thereby increasing its market penetration. Better healthcare infrastructure and increased awareness of the treatment options are also contributing factors[3].
Economic and Accessibility Factors
Rising disposable incomes and improved healthcare infrastructure in many regions enable more people to afford specialized treatments like Absorica. The availability of isotretinoin through various distribution channels, including online pharmacies, enhances its accessibility[3].
Challenges and Opportunities
Generic Competition
The presence of generic versions of isotretinoin poses a significant challenge to Absorica's market share and pricing. However, the launch of authorized generic versions, such as Absorica AG, can help in broadening the product portfolio and maximizing market value[1].
Regulatory Environment
Favorable government regulations and the requirement for isotretinoin to be prescribed by experienced dermatologists ensure a controlled market. This can be both a challenge and an opportunity, as it maintains the quality of care but also limits accessibility in some regions[4].
Sales Projections
Given the overall growth trends in the isotretinoin market, Absorica is expected to maintain a significant market presence. Here are some key projections:
- Revenue Growth: Despite fluctuations, Absorica's licensing revenue is expected to grow in line with the overall isotretinoin market, driven by increasing demand for acne treatments.
- Market Share: Absorica's market share is likely to remain competitive, around 4-6%, depending on the presence of generic versions and the effectiveness of marketing strategies.
- Regional Performance: North America will continue to be a strong market for Absorica, with Europe and Asia-Pacific also showing promising growth.
Key Takeaways
- The global isotretinoin market is projected to grow to USD 2,053 million by 2031.
- Absorica's sales are influenced by the overall demand for acne treatments and the presence of generic versions.
- North America remains the largest market for Absorica, with Europe and Asia-Pacific showing significant growth potential.
- Improvements in side effects management and economic factors are driving the market forward.
- Generic competition and regulatory requirements are key challenges and opportunities.
FAQs
What is Absorica used for?
Absorica is used primarily for the treatment of severe acne, including nodular and conglobate acne.
How is the global isotretinoin market expected to grow?
The global isotretinoin market is expected to grow at a CAGR of 4.88% from 2024 to 2031, reaching USD 2,053 million by 2031.
Which region is the largest market for Absorica?
North America is the largest market for Absorica, driven by a well-developed healthcare infrastructure and high prevalence of skin problems.
What are the main drivers of growth for Absorica?
The main drivers include increasing demand for acne treatment, improvements in side effects management, and economic and accessibility factors.
How does generic competition affect Absorica's market share?
Generic competition can reduce Absorica's market share and pricing, but the launch of authorized generic versions can help in maintaining market value.
What regulatory factors influence the market for Absorica?
Favorable government regulations and the requirement for isotretinoin to be prescribed by experienced dermatologists ensure a controlled market, which can both limit and ensure the quality of care.
Sources
- Cipher Pharmaceuticals: "Cipher Reports 30% Revenue Growth and 40% Adjusted EBITDA Growth in Second Quarter of 2021, Driven by Strength in Epuris and Absorica"[1].
- Cipher Pharmaceuticals: "Cipher Pharmaceuticals Reports Strong First Quarter 2022 Financial Results"[2].
- Verified Market Research: "Isotretinoin Drugs Market Size, Share, Trends, Growth & Forecast"[3].
- Straits Research: "Isotretinoin Drugs Market Size, Share, Analysis and Forecast to 2031"[4].
