The global heart failure drugs market is a very lucrative, attractive, and profitable market, both for existing players as well as new entrants. Our analysis revealed that market players have adopted different strategies to increase their business and position in the global heart failure drugs market. In recent years, strategic movements made by major players were product launches, acquisitions, and strategic agreements, which have been used as market penetration strategies and to reduce competition. The major players in the global heart failure drugs market are Novartis AG, AstraZeneca, Merck Sharp & Dohme Corp., and Bayer AG, among others.
Companies are now entering into acquisitions, collaborations, product launches, product approvals, and expansions to neutralize growing competition from customers, competitors, and to tackle the changing market dynamics.
There are numerous players operating in this market all over the globe. Most of these players exist in the American and European regions. There are a lot of large and small market players available in the market which provide a wide range of branded and generic products.
Entresto (sacubitril/valsartan), by Novartis, is a first-in-class angiotensin receptor/neprilysin inhibitor indicated for the treatment of symptomatic chronic heart failure with reduced ejection fraction (HFrEF). Entresto was approved in the US and the EU in 2015. It is now approved in more than 100 countries and launched in more than 90 countries. The European Society of Cardiology’s heart failure guidelines and the US heart failure guidelines have given a Class I recommendation for the use of sacubitril/valsartan in patients with HFrEF. Over the years, Entresto has witnessed tremendous growth reaching over 3,900 NBRx (new-to-brand) prescriptions in the first quarter of 2019. Additionally, Novartis stated that Entresto was used to treat more than 420 000 heart failure patients worldwide.
It is a leader in the field of heart failure drugs due to growing year on year sales that are driven by growing adoption by physicians and strong volume in all markets. For instance, in 2017, the sales revenue for Entresto was USD 507 million, and in 2018 it grew to USD 1028 million. Moreover, in the first quarter of 2019, Entresto reported net sales of USD 357 million, with a YoY (year-over-year) rise of 85%. Additionally, there is currently no generic competition in the US, EU, or Japan.
Furthermore, Novartis is working towards providing accessibility of these drugs in low and middle-income countries (LMICs). The number of patients reached with Entresto in LMICs grew two-and-a-half-fold in 2018. With such initiatives and year on year growth rate, Entresto remains the leader for the heart failure drugs market.
Threat of New Entrants
The threat of new entrants is high in the global heart failure drugs market. The threat of new entrants is high due to the strong pipeline and rising recent product launches. Major players such as AstraZeneca, Merck Sharp & Dohme Corp., and Bayer are involved in developing heart failure specific drugs such as AZD4831, Vericiguat, and Neladenoson bialanate and are aiming to launch the products during the forecast period of 2019 to 2025.
Bargaining Power of Suppliers
In the global heart failure drugs market, suppliers are raw materials manufacturers for drug manufacturing companies. The bargaining power of suppliers is low as there is a high number of suppliers in the heart failure drugs market. Additionally, the switching cost is low as no supplier can influence the prices and exercise control in the industry, which makes the bargaining power low.
Threat of Substitutes
The threat of substitutes in the global heart failure drugs market is low to medium because of the presence of surgeries. But, the high adoption of these drugs by physicians and brand loyalty restrict the threat by the substitutes. Also, the low to medium degree of switching costs may minimize the threat of substitutes.
Bargaining Power of Buyers
The bargaining power of buyers is moderate in the global heart failure drugs market. The presence of buyers in the market is growing due to the increasing awareness about the different products, along with the rising prevalence of heart failure. Additionally, the presence of providers is also increasing, which makes the bargaining power of buyers moderate due to the low switching costs.
Intensity of Rivalry
The degree of competition in the global heart failure drugs market is low as of now. However, it will witness a high degree of competition in the near future. The restrained degree of product and service differentiation among existing players increases the intensity of rivalry in the market. Heart failure drugs provider companies are trying to provide cost-effective services to make them more affordable. To overcome the competition, drug and device manufacturing players are engaged in developing a process to lower their manufacturing costs.
