Globally there are various players operating in this market. The Americas and the European regions are hubs for major companies, generating maximum market share which has turned these regions into well-established markets. These companies have expanded their operating units in various other regions as well. Moreover, there are numerous small and medium scale players that generate maximum revenue from local markets.
The above diagram displays the market share of major companies operating in the global chemotherapy market. The global chemotherapy market is led by F. Hoffmann-La Roche Ltd (Switzerland) with 18.1% of the global market share followed by Celgene Corporation (US) with 10.7%, Johnson & Johnson Services Inc. (US) with 7.9%, Novartis AG (Switzerland) with 7.0%, and Pfizer Inc. (US) for the fifth largest with 4.0% of the market share.
F. Hoffmann-La Roche Ltd (Switzerland) is one of the leading players in the field of chemotherapy. The firm accounted for 18.1% share in 2018. It focuses on research and development activities to introduce innovative products in the market to maintain its position in the chemotherapy market. The company focuses on organic growth strategies to maintain its leading position in the market. Recently, in March 2019 the company received the FDA approval for Tecentriq for the treatment of small cell lung cancer. Similarly, in February 2019 the company received FDA approval for Herceptin Hylecta for the treatment of early breast cancer.
Celgene Corporation (US) contributes to approximately 10.7% of the global chemotherapy market. The company provides a wide range of chemotherapy products by strengthening research and development activities. The company focuses on an inorganic growth strategy to maintain its share in the market. Recently, in July 2017 Celgene Corporation entered into a collaboration with BeiGene to develop and commercialize oncology products. Similarly, in June 2016 the company entered into a collaboration with four National Cancer Institutes for the development of novel cancer therapeutic products.
Johnson & Johnson Services Inc. (US) accounted for the third largest spot with 7.9% of the market share. It offers caelyx, dacogen, doxil, yondelis, etc. chemotherapy drugs in the market. It is focused on organic and inorganic growth strategies to increase its share in the market. Recently, in December 2017 the firm entered a license agreement with Legend Biotech USA Inc. and Legend Biotech Ireland Limited for the development and commercialization of anti-cancer therapy drugs in the market.
Novartis AG (Switzerland) accounted for the fourth largest spot with 7.0% of the market share. It offers Tykerb, Kisqali, Gleevec, Tasigna, etc. chemotherapy drugs in the market. It is focused on organic growth strategies to increase its share in the market. Recently, in August 2018 the firm received the European Commission approval for Tafinlar in combination with Mekinist for the treatment of melanoma. The strong presence across the globe helps it to maintain its major position in the market.
Pfizer Inc. (US) accounted for the fifth largest spot with 4.0% of the market share. It offers camptosar and daurismoetc. chemotherapy drugs in the market. It is focused on organic growth strategies to increase its share in the market. Recently, in April 2019 the firm received FDA approval for Ibrance for the treatment of metastatic breast cancer. Similarly, in November 2018 the company received FDA approval for Daurismo for the treatment of acute myeloid leukemia.
Bargaining Power of Suppliers
The suppliers in the global chemotherapy industry are the developers of the drugs. There are a number of developers in the market providing various treatment for different applications. Due to the complexity of the diagnostic process and the government regulations on the new drug formulations for testing the efficacy and safety of the drugs, thus leading to the high amount of bargaining power of suppliers in the market. Currently, most of the approved drugs are related to oncology and focused on different types of cancer. Strategic and economic modifications from the existing Chemotherapy services can have a huge impact on the market with the other pharmaceutical, biotechnological companies, and device manufacturing companies being involved in the business. Hence the overall bargaining power of suppliers in the global chemotherapy market is high.
Bargaining Power of Buyers
The bargaining power of the buyer is considered to have a high impact on the industry. The bargaining power of the buyers assesses how easy it is for the buyers to affect the price of chemotherapy treatment. The large customer base ensures the possibility of pooling of cancer treatment by large hospitals and insurers. The price sensitivity for cancer treatment is high.
Threat of New Entrants
Threat from a new entrant is considered to have a high impact on the industry. In Porter’s Five Forces Analysis, ‘Threat of New Entrants’ refers to the threat that new competitors pose to existing competitors in an industry. A profitable industry will attract more competitors looking to achieve profits. As the number of entrants increases, the profitability of the present players in the industry subsequently decreases. Any newer treatment has to be better at the existing first-line drugs. The existing treatments are fraught with serious side effects and their low cure rates. Thus, the emergence of a novel acting treatment will lead to faster market absorption with the least market uptake costs.
Threat of Substitutes
The threat of substitutes in the global chemotherapy market is very high. High threat of substitutes is due to the massive research and funding conducted to develop technologically advanced treatments. Cancer treatment has witnessed various therapies over the year which are proving its efficiency. For example, targeted therapies and hormonal therapies have witnessed majority usage.
Intensity of Rivalry
The degree of competition in the global chemotherapy market is high. There is a huge number of players in the market at present, and their product portfolio is quite varied from one another. The major companies are trying to develop accurate drugs to capture the major chunk of the market. Hence the level of intensity of rivalry is high now. To overcome the competition, players are engaged in partnering with the established pharmaceuticals. Moreover, the players are also developing advanced products for differentiating their brand from their competitors.
