The global onychomycosis market is characterized by the presence of many global, regional, and local vendors. At the same time, an intense rivalry is observed among the existing manufacturers in the market. Our analysis revealed that market players have adopted different strategies and innovative research and development techniques to expand their business and secure their position in the market.
The increasing occurrences of onychomycosis are the key factor that determines the market growth. In recent years, strategic movements by major players included collaborations, acquisitions, and mergers, which have been used as market penetration strategies and a means to reduce competition. The major players in the global onychomycosis market are Novartis AG, Pfizer, Inc., Galderma Laboratories, Bausch Health Sciences, and Moberg Pharma, among others.
The growth of market vendors is dependent on market conditions, government support, and industry development. Thus, vendors should focus on geographical expansion and the development of novel offerings. International players are likely to strengthen their presence worldwide during the forecast period through acquisitions. It has also been predicted that improvement of the global economic scenario combined with efforts to enhance infrastructure and awareness in emerging nations, can fuel the market growth, making it an ideal time to launch new products and increase the market share.
Vendors with better technical and financial resources could develop innovative products. Therefore, vendors must develop new technologies to stay abreast of emerging technologies that could affect the continuing competitiveness of their product lines in the market.
Novartis AG researches, develops, manufactures, and markets healthcare products worldwide. The company’s innovative medicines segment offers prescription medicines for patients and healthcare providers. It provides medicines in the areas of ophthalmology, neuroscience, immunology, hepatology and dermatology, cardio-metabolic, and respiratory. The firm accounted for 18.3% share in 2018. It has successfully integrated small companies by 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.
Pfizer, Inc. accounted for a market share of 11.7% in 2018. The company offers medicines and vaccines in various therapeutic areas such as vaccines, oncology, inflammation and immunology, and rare diseases, among others. It focuses on maximizing its market penetration by continuously getting involved in mergers and acquisitions with regional manufacturers in the skin health field. For instance, in June 2016, the company completed its acquisition of Anacor Pharmaceuticals, Inc. Through this strategy, it aims to strengthen its position in the onychomycosis market.
Bausch Health Sciences accounted for approximately 7.4% of the onychomycosis market in 2018. This company manufactures products primarily in the therapeutic areas of eye health, gastroenterology, and dermatology. It employs a strategy of maintaining the quality of products by maximum automation and rising investment in research and development, which helps it in maintaining its market position. Its blockbuster product Jublia was approved by FDA in 2014 and has highly contributed to the share of the company in the onychomycosis market.
Galderma Laboratories contributed to approximately 6.5% of the onychomycosis market in 2018. The company manufactures drugs, medical solutions, and therapeutic skincare products to treat acne, rosacea, psoriasis, skin cancer, and nail diseases. The strategy of the company is to expand its skin health business geographically, thus bracing its position in the market.
One of the prominent players in the market is Moberg Pharma AB. It is a Swedish pharmaceutical company with over the counter (OTC) sales operations in the US and a distributor network in more than 40 countries. The company held a share of 3.9% in the global onychomycosis market in 2018. This is attributable to the rigorous research and development activities of the company. For instance, the company has the candidate MOB-015 in phase III clinical trials. It is also involved in partnerships with major pharmaceutical companies to expand its reach in developed regions. For instance, in February 2019, Moberg Pharma AB signed a license agreement with Bayer AG for the commercialization of MOB-015 in Europe. Similarly, in September 2018, the company signed an exclusive license agreement with Cipher Pharmaceuticals for the commercialization of MOB-015 in Canada.
Other key companies in the onychomycosis market are Dr. Reddy’s Laboratories Ltd, Medimetriks Pharmaceuticals, Inc., Merz Pharma, and Johnson & Johnson Services, Inc, among others.
Bargaining Power of Suppliers
Currently, the market consists of a huge number of players manufacturing ointments, creams, and gels for onychomycosis treatment as well as anti-fungal drugs. However, few existing key companies capture significant share in the market and have the capability of fluctuating the costs of the products. Another factor affecting the bargaining power of suppliers is the switching cost for buyers owing to the presence of local companies. Furthermore, many companies are focusing on the development of new treatment options, which increases competition in the market. The overall bargaining power of suppliers in the global onychomycosis market is medium.
Bargaining Power of Buyers
The bargaining power of buyers is low to medium in the global onychomycosis market. Patients are the major buyers for the market. The presence of buyers in the market is rising due to the increasing prevalence of nail infections. In addition, buyers are price-sensitive, which moderately affects their bargaining power in the market. The market is characterized by moderate availabilities of substitute products, which reduces the buying power to an extent.
Threat of New Entrants
The threat of new entrants is medium in the global onychomycosis market due to the development of the potential market. Any company trying to enter the market has to get the product approved and certified by various regulatory authorities in different countries. The rising awareness regarding onychomycosis and its severity among the patients pushes the currently established and other manufacturers to focus more on this treatment alternatives. There is a stronghold of the big companies in this market, which can make the entry of the new players a bit difficult.
Threat of Substitutes
The threat of substitutes in the global onychomycosis market is medium. Although there is a moderate number of substitutes available in the market, buyer propensity to substitute is low as most of the medical professionals prescribe a limited number of ointments or drugs for the treatment of onychomycosis. Additionally, quality and trust issue and excellent service provided by the existing players restrict the threat by the substitutes.
Intensity of Rivalry
The degree of competition in the global onychomycosis market is high. The moderate degree of product differentiation among existing players increases the intensity of rivalry in the market. Companies involved in the onychomycosis market are trying to develop cost-effective products to make product differentiation more affordable. To overcome the competition, players are engaged in developing a process to lower their manufacturing cost. Moreover, the players are also developing advanced techniques for differentiating their product from their rivals.
