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May 7, 2005
Firms Compete for future Inhaled-Insulin Market
With Type 2 diabetes skyrocketing (thee American Diabetes Association suggests 18.3 million U.S. residents -- 6.3% of the population -- have the disease) and newly diagnosed adults reluctanct to use insulin injections four times a day, companies are hoping to capitalize on the potential $3 billion inhaled insulin market. As several firms seek FDA approval, analysts wonder if insurance companies reimburse the expensive product.
In the coming months and years, pharmaceutical giants such as Eli Lilly , Pfizer and Sanofi-Aventis will seek approval for these new insulin-delivery devices -- similar to the contraptions used by asthma patients. The first products could hit the market by early 2006.Not only could inhaled insulin make the drug more palatable among diabetics skittish about injections, but it might also bring a new market into play. The caveat, however, is cost.
According SG Cowen analyst Ian Sanderson, inhaled insulin would cost $4 to $4.50 a day right now, compared with 85 cents to $1 for the injected version. Sanderson's figures are based on four treatments per day of each type of insulin.
Experts have said insurance reimbursement also could be a problem, though that won't be resolved until carriers evaluate the drugs.
"What would discourage higher market penetration would be price and safety," according to Sanderson. "From a reimbursement perspective, there's little argument to be made for a product that's five times the price."
But Sanderson said the current U.S. market for insulin products is $2.7 billion, with overseas sales amounting to another $3.2 billion. He sees inhaled insulin eventually penetrating up to 20% of the Type 2-diabetes market, with peak sales of about $2.8 billion overall.
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Posted by Diabetologica at May 7, 2005 12:00 PM