Leading Players & Their Growth Strategies in the Global Topical Drug Delivery Market

According to the Global Burden of Disease Project, skin diseases such as psoriasis, eczema, skin cancer, and vitiligo continue to be the fourth-leading cause of nonfatal disease burden worldwide and affect a large proportion of the global population. According to the WHO, between 2 and 3 million cases of non-melanoma skin cancer and 132,000 cases of melanoma skin cancer are diagnosed annually across the globe. 

Furthermore, the prevalence of psoriasis worldwide ranges between 0.09% and 11.43%, making it a serious global problem with at least 100 million individuals affected worldwide (Source: WHO 2016). As topical drug delivery is the first line of treatment for the majority of skin diseases, the demand for advanced topical products is expected to increase in the coming years.

The topical drug delivery market is projected to reach USD 129.8 billion by 2025 from USD 95.2 billion in 2020, at a CAGR of 6.4% during the forecast period.

Several alternative drug delivery modes are available for patients and end users. The benefits of these alternatives over topical drug delivery form a key restraint to the growth of this market. Of these, the oral route is the most preferred as it is easy to use, convenient, cost-effective, safe, and acceptable. Furthermore, orally administered drugs can be conveniently stored and are portable, economical, noninvasive, and safe. No special training is required for the administration of these drugs as compared to topical formulations. Injectables also witness widespread use—for example, insulin injections for diabetics to self-administer.

The topical drug delivery market is consolidated at the top with a large number of leading market players based in developed countries. The prominent players operating in this market include Johnson & Johnson (US), Nestlé SA (Switzerland), Novartis AG (Switzerland), GlaxoSmithKline (UK), Bausch Health Companies (Canada), Merck & Co (US), Bayer AG (Germany), Hisamitsu Pharmaceutical (Japan), Glenmark Pharmaceuticals (India), Cipla Ltd (India), Crescita Therapeutics Inc. (Canada), Mylan (US), Encore Dermatology, Inc. (US), LEO Pharma (Denmark), Almirall, S.A (Spain), Aclaris Therapeutics, Inc. (US), Taro Pharmaceutical Industries Ltd. (US), Teligent Pharma (US), Perrigo Pharma (US), Allergan (Ireland), Biofrontera, Inc. (US), Crown Laboratories Inc. (US), Akorn Inc. (US), Ingenus Pharmaceuticals (US), and Sun Pharmaceuticals (India).

Janssen Global Services LLC, a subsidiary of Johnson & Johnson provides medicines for an array of health concerns in several therapeutic areas, such as general medicine, mental health, neurology, pain management, and women’s health. To maintain its leading position in the market, the company focuses on acquisitions. For instance, in January 2018, Johnson & Johnson entered into a definitive agreement to acquire Ci:z Holdings Co., Ltd. (Japan). The acquisition gives J&J access to Ci:z Holdings’ line of topical skin health products, helping it diversify its drug portfolio in Japan and other Asia Pacific countries.

Galderma, a subsidiary of Nestlé, is a provider of dermatology solutions and aesthetic and corrective products internationally. The company offers a broad portfolio of topical products, which include drugs, medical dermatology solutions, and therapeutic skin care products that are used in the treatment of hair, nail, and skin diseases. The company focuses on product approvals, product launches, and expansions to maintain its leading position in the topical drug delivery market.

Novartis manufactures healthcare and pharmaceutical products. It operates in three segments—Pharmaceuticals, Alcon (Eye Care), and Sandoz (Generics). The company has a broad range of access-to-medicine programs, which include drug donations, social business initiatives, and patient assistance programs. Novartis has a presence in over 155 countries, including the US, Europe, Asia, Africa, and Latin America. In order to maintain its leading position, the company significantly invests in R&D activities, which helps it to develop and launch new and advanced products. In 2018, the company invested 12.6% of its total revenue on R&D activities. A diversified product portfolio, wide geographical reach, and constant focus on R&D have enabled the company to create a strong foothold in the topical drug delivery market.