Since 2014, five potential blockbuster drugs have been approved in the dermatology therapy area, within which they are forecast to achieve aggregate annual revenue of $12.4 billion by 2023, according business intelligence provider GBI Research.

The company’s latest report states that four of the five market-driving drugs – Cosentyx, Otezla, Eucrisa and Taltz – were approved for psoriasis, and one, Dupixent, became the first and only biologic to be approved for the treatment of atopic dermatitis. Indeed, Dupixent is expected to face very little competition and as a result will generate the second highest revenue of any drug in the therapy area.

Ross Wilkinson, Associate Analyst for GBI Research, explains: “In terms of pipeline products, the dermatology space contains 850 with a disclosed stage of development, but the majority of these are at an early stage. Biosimilars only make up 6% of the dermatology pipeline, but are more common at the later phases of clinical development, accounting for 24%.”

“Biosimilar manufacturers are attracted to the dermatology therapy area following the patent expiration of a number of commercially successful products. By 2023, AbbVie’s Risankizumab and Johnson & Johnson’s Guselkumab are expected to be in the market, but these products will fail to achieve the same level of commercial success as early market entrants because the psoriasis market now contains a number of branded biologics and will become further saturated as new biosimilars enter the market.”

“However, the pipeline is promising for smaller indications such as acne vulgaris and epidermolysis bullosa, which could both see the approval of new first-in-class products.”

In terms of the market landscape, the dermatology therapy area is dominated by top the 20 pharma companies. In 2016 the most commercially successful companies in the therapy area were Johnson & Johnson, AbbVie, Amgen, Novartis and Pfizer.

During the forecast period, these companies will continue to generate high revenue, although all will see their market shares change.

Wilkinson continues: “Although several companies are expected to see a reduction in market share, some companies such as Sanofi, Novartis and Eli Lilly will see their market share increase. In 2016 Sanofi had a market share of only 0.3%, but following the approval of Dupixent in 2017 it is expected to become the fourth-largest company in the therapy area by the end of the forecast period, with a market share of 10.3%.”