Industry Trends

Asia Pacific Compounding Pharmacies Market Share was valued at USD 1.6 billion in 2019 and is expected to witness 6.8% CAGR from 2019 to 2026.
 

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Increasing shortage of drugs including cancer medications and other emergency drugs will increase the demand for compounding pharmacies over the forecast timeframe. Drug shortages have been attributed to production delays along with supply chain issues such as interruptions in receiving raw materials that has further resulted in low supply of drugs. Drug shortages lead to medication errors and may damage patient outcomes and can affect healthcare finances due to higher cost of care. Furthermore, the gray market has emerged to address drug shortages. Shortage of emergency drugs used to treat diabetes, cancer, and cardiac diseases could result in patient death. Hence, compounding pharmacies can serve to fill the gap by producing drugs that are currently unavailable that enhances the compounding pharmacies market growth.

Asia Pacific Market, By Therapeutic Area

The Asia Pacific therapeutic area segment covers nutritional supplements, dermatology applications, pain management, hormone replacement, specialty drugs and others. Hormone replacement segment accounted for around USD 480 million revenue size in 2019. The geriatric population along with increased life expectancy has led to surge in number of patients suffering from hormonal imbalance. Increasing application of hormone replacement in the treatment of various diseases such as cancer, and also in maintaining the hormonal levels in menopause will augment the segmental growth.

Asia Pacific Market, By Product

Based on product, the Asia Pacific compounding pharmacies market is fragmented into ophthalmic, nasal, topical, rectal, oral, parenteral, and otic. The ophthalmic segment accounted more than 11% market share in 2019. Compounding ophthalmic care medicines such as glaucoma medications that are affordable as compared to others surges its overall adoption rate. Similarly, compounded dosage forms such as glaucoma drops aids patients by reducing  pressure and uncertainty over several medications and dosing schedules. Compounding ophthalmic medications are available in several dosage forms including injections, oral tablets, capsules and drops making it a preferable option among population. Thus, increasing availability of several dosage forms in ophthalmic care will boost the segmental progression.

Asia Pacific Market, By Application

The compounding pharmacies market, on the basis of application, is classified into adult, geriatric, pediatric, and veterinary. The pediatric segment is anticipated to witness around 8% CAGR for the analysis timeframe. Various flavours are made available by compounding pharmacists for enhancing the taste and colour of medication without changing its effectiveness, increases its adoption rate among children. Paediatrician and compounding pharmacists develop and prepare medications in different dosage forms to avoid difficulty in in swallowing tablets or capsules in children, favouring the industry growth.

Asia Pacific Market, By Sterility

The Asia Pacific compounding pharmacies market, on the basis of sterility, is segmented into sterile and non-sterile dosage forms. The sterile segment witnessed around USD 495 million market value in 2019. Sterile compounded medications are majorly intended to be used as infusions, injections, or application to the eye. Rising demand for sterile compounding pharmacies owing to adoption of ophthalmic and parenteral medications for various treatments will foster the segmental progression.

Asia Pacific Market, By Compounding Type

Based on compounding type, the industry is divided into currently unavailable pharmaceutical manufacturing (CUPM), pharmaceutical ingredient alteration (PIA), pharmaceutical dosage alteration (PDA) and others. Pharmaceutical ingredient alteration (PIA) held around 35% market share in 2019.  Some of the commercially available drugs such as NSAIDs, antibiotics, HIV drugs and chemotherapy drugs can cause side effects or allergies among the individuals, that in turn creates demand for customized medicines for effective patient cure with minimal side effects. Removing preservatives and designer dyes during compounding minimizes the allergic reactions as well as cost of the compounded drugs, augmenting the business growth.

Asia Pacific Market, By Distribution Channel

The compounding pharmacies distribution channel segment is fragmented into compounding pharmacies, hospital pharmacies and others. The hospital pharmacies segment was valued more than USD 850 million market value in 2019. Factors such as availability of customized medications and improved patient outcomes in hospitals will create the demand for hospital pharmacies accelerating the segmental progression. In addition, easy access to patients with improved medication dosage will escalate the demand for compounding medications in hospital pharmacies.

Asia Pacific Market, By Country

The Japan compounding pharmacies market held around 5.6% CAGR over the analysis timeframe. Rising elderly population base in Japan is the key factor stimulating the regional business growth. Rising prevalence of chronic disorders such as cancer and other disorders will accelerate the demand for compounded pharmacies in this country. Developing hospital facilities and infrastructure coupled with large patient pool will foster the overall compounding pharmacies market growth.

Competitive Market Share

Some of the leading players operating in Asia Pacific compounding pharmacies market are Fresenius Kabi, Clinigen Group, B. Braun, Amber Compounding Pharmacy, Athenex, Fresh Therapeutics, Super Pharmacy, Kingsway Compounding, Veterinary Specialty Pharmacy, Belle Santé Diagnostic & Therapeutic Institute, and Fagron. The business players are adopting strategies such as product innovations and expansion to expand their customer base and cater to the growing demand. For instance, in April 2018, Fagron announced the acquisition of Humco, a developer of branded pharmaceuticals and patented vehicles. This acquisition has helped the company increase their product portfolio and strengthen their market position.

Industry Background

The modern age of compounding pharmacy started in the 19th century with the isolation of several compounds from coal tar for the purpose of manufacturing synthetic dyes. During the 1800s, pharmacists specialized in compounding and preparation of crude drugs. Similarly, the earliest known drugstore was revealed to be in Baghdad in the year 754 A.D., and this particular drugstore made use of compounding as well as alchemy. In ancient times compounding continued with female and male priests preparing specific mixtures to administer to sick patients in their communities. Spiritual and religion beliefs were often entwined with pharmaceutical compounding during the old times. Additionally, in today’s creation many cultures still believe in the combination of faith and medicine as effective methods of healing. Furthermore, compounding pharmacies play an important role in the modern world due to its numerous applications and usages. Therefore, the demand as well as need for compounded drugs for improved patient management will escalate the overall market expansion during forthcoming years.