The global irritable bowel syndrome treatment market is dominated by several market players such as Allergan, Ironwood Pharmaceuticals, Valeant Pharmaceuticals International, Inc., Mallinckrodt, and others. The major players in the irritable bowel syndrome market are opting for new product launches, strategic collaborations, and partnerships to brace their position in the market.
Allergan and Ironwood Pharmaceuticals, both collectively accounted for the largest share of 46.5% in the global irritable bowel syndrome treatment market in the year 2017. Allergan has successfully integrated small companies through mergers and acquisitions to build a strong supply chain network. High customer satisfaction level, exceptional performance in new markets, and strong brand portfolio add to the company’s competitive advantage. Similarly, Ironwood Pharmaceuticals employs a strategy of focusing on rare and severe diseases, maintaining the quality of the products by maximum automation and rising investment on research and development which helps the company in maintaining its market position. The company’s major share is due to its blockbuster product LINZESS, a drug which is used for the treatment of irritable bowel syndrome. Additionally, the company is engaged in strategic collaborations which facilitates it to strengthen its position and expand its market presence globally. For instance, Ironwood's partner Astellas Pharma, Inc. is commercializing LINZESS for adults with IBS-C in Japan.
Valeant Pharmaceuticals International, Inc. held the second largest share of 28% in the global irritable bowel syndrome treatment market in the year 2017. The company develops, manufactures, and markets a wide range of pharmaceutical products primarily in the areas of dermatology, gastrointestinal disorders, eye health, neurology, and branded generics. Furthermore, the company is engaged in strategic collaborations and mergers which helps the company to hold its market position. For instance, in February 2015, the company acquired Salix Pharmaceuticals, a specialty pharmaceutical company devoted to developing and commercializing prescription drugs and medical devices used in the treatment of a variety of GI disorders with a portfolio of over 20 marketed products, including Xifaxan, which is used in the treatment of diarrhea-predominant irritable bowel syndrome (IBS-D) in adult women and men, in traveller's diarrhea caused by E. coli, as well as in the reduction in risk of overt hepatic encephalopathy recurrence. As published in the annual report of the company in 2017, Xifaxan contributed to 11% of the total product sales.
Mallinckrodt held the third largest share of 6.3% in the year 2017. This was majorly due to its product Amitiza, which is used to treat idiopathic chronic constipation and irritable bowel syndrome. The company focuses on mergers and acquisitions to expand its market. For instance, in February 2018, Mallinckrodt acquired Sucampo Pharmaceuticals, a global biopharmaceutical company. This strategy of the company aims to expand its specialty brands segment.
Astellas Pharma, Inc. is also a prominent player in the irritable bowel syndrome treatment market. It has a worldwide presence with its own distribution channels in more than 50 countries around the world. The company works in therapeutic segments such as oncology, immunology, neuroscience, ophthalmology, and other areas. In March 2017, the company announced the launch of LINZESS tablets for the treatment of irritable bowel syndrome. The company has several products in the pipeline for various therapeutic areas. For instance, in January 2017, Astellas Pharma, Inc. and its strategic partner Ironwood Pharmaceuticals, Inc. reported positive data from Phase III clinical trial of linaclotide in adult patients with chronic constipation in Japan.
Apart from the major players in the irritable bowel syndrome treatment market, some other players such as Lexicon Pharmaceuticals, Ardelyx, Inc., Nestle Health Sciences, Synergy Pharmaceuticals, Abbott, and few others collectively held 19.2% market share in the global market in 2017.
Bargaining Power of Suppliers
Bargaining power of suppliers in the irritable bowel syndrome treatment market is medium. The suppliers in the market are manufacturers and suppliers of IBS treatment products. Currently, the market is dominated by few existing major companies and they have the capability of fluctuating the costs of the products. Switching cost of these suppliers is medium as suppliers tend to enter into long-term associations, partnership and deals with the drug manufacturing companies. The overall bargaining power of suppliers in the global irritable bowel syndrome treatment market is medium.
Bargaining Power of Buyers
The bargaining power of buyers is medium in the global irritable bowel syndrome treatment market owing to the growing prevalence of IBS globally. The buyers in the market are majorly inclined towards the brand identity. Additionally, the buyers can exert moderate pressure on the companies in this market as some companies provide their products at a high cost.
Threat of New Entrants
The threat of new entrants is low to medium in the global irritable bowel syndrome treatment market. Any IBS drugs manufacturing company trying to enter the global market is required to abide by mandatory regulatory standards. Prevalence of irritable bowel syndrome is increasing significantly, which has increased the demand for new drugs. Additionally, available drugs did not show long-term effects and thus manufactures are focusing on research and development. Moreover, the introduction of new drugs requires a long-time clinical trial and a huge capital which creates a difficult scenario for new entrants in the market.
Threat of Substitutes
The threat of substitutes in the global irritable bowel syndrome treatment market is medium. There are few substitutes available in the market, and buyer propensity to substitute is low to medium. However, the quality and trust issue and excellent service provided by the existing players restrict the threat by the substitutes.
Intense Rivalry
The degree of competition in the global irritable bowel syndrome treatment market is medium to high. The moderate degree of product differentiation among existing players increases the intensity of rivalry in the market. Additionally, the companies involved in irritable bowel syndrome treatment market are trying to introduce new effective treatments for different IBS types for differentiating their product from their rivals.
