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Frost & Sullivan: A 10 Percent Yearly Rise in the Price of Branded Drugs Keeps the Indonesian NSCLC Drugs Market Afloat

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Frost & Sullivan: A 10 Percent Yearly Rise in the Price of Branded Drugs Keeps the Indonesian NSCLC Drugs Market Afloat PR Newswire JAKARTA, Indonesia, June 6, 2012 - Higher Numbers of Smokers Keep the Patient Pool from Shrinking JAKARTA, Indonesia, June 6, 2012 /PRNewswire/ -- Branded NSCLC drugs in Indonesia cost almost three times as much as generic drugs. Their high prices are expected to compensate manufacturers for the decline in sales volumes, as generics is the first line and often, the only form of drug treatment for NSCLC in Indonesia. New analysis from Frost & Sullivan (http://www.pharma.frost.com), The Non- small Cell Lung Cancer Drug Market in Indonesia, finds that the market earned revenues of $16.0 million in 2010 and estimates this to reach $26.0 million in 2015. Branded drugs are sold at price-per-cycle and their volumes drop when the price-per-cycle crosses $850. As the price-per-cycle of generic drugs has not reached the $850 mark yet, their volume is expected to continue rising. The prices of both generic and branded NSCLC drugs could see a spurt along with the increase in transportation and oil costs, since active pharmaceutical ingredients (APIs) are generally imported. However, the market will be sustained by the increasing incidence of NSCLC caused by the high rates of smokers. "The percentage of adult male smokers has increased from 53 percent in 1995 to 66 percent in 2010; and while only 4.
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Frost & Sullivan: A 10 Percent Yearly Rise in
the Price of Branded Drugs Keeps the
Indonesian NSCLC Drugs Market Afloat
PR Newswire
JAKARTA, Indonesia, June 6, 2012
-
Higher Numbers of Smokers Keep the Patient Pool from Shrinking
JAKARTA, Indonesia
,
June 6, 2012
/PRNewswire/ -- Branded NSCLC drugs in
Indonesia
cost almost three times as much as generic drugs. Their high prices
are expected to compensate manufacturers for the decline in sales volumes, as
generics is the first line and often, the only form of drug treatment for NSCLC in
Indonesia
.
New analysis from Frost & Sullivan (http://www.pharma.frost.com),
The Non-
small Cell Lung Cancer Drug Market in
Indonesia
, finds that the market
earned revenues of
$16.0 million
in 2010 and estimates this to reach
$26.0
million
in 2015.
Branded drugs are sold at price-per-cycle and their volumes drop when the
price-per-cycle crosses
$850
. As the price-per-cycle of generic drugs has not
reached the
$850
mark yet, their volume is expected to continue rising.
The prices of both generic and branded NSCLC drugs could see a spurt along
with the increase in transportation and oil costs, since active pharmaceutical
ingredients (APIs) are generally imported. However, the market will be
sustained by the increasing incidence of NSCLC caused by the high rates of
smokers.
"The percentage of adult male smokers has increased from 53 percent in 1995
to 66 percent in 2010; and while only 4.2 percent of adult Indonesian women
smoke, their numbers have also increased from the 1.7 percent in 1995," says
Frost & Sullivan Research Analyst Poornima Srinivasan. "Furthermore,
approximately 97.0 million non-smokers are routinely exposed to secondhand
smoke (SHS) and 70.0 percent of children under the age of 15 are regularly
exposed to SHS, expanding the market for NSCLC drugs."
Eugene van de Weerd, Country Director, Frost & Sullivan –
Indonesia
notes that
Indonesia
also has one of the highest number of child smokers in the world,
with 25.0 percent of children over the age of 3 having tried cigarettes. This is
likely to cause the onset of tobacco-related illnesses, which includes NSCLC, to
occur at earlier ages.
"In addition, cigarettes are relatively cheap and taxes levied by the
government, at 37.0 percent of the sales price, are low in comparison to the
global standard of 70.0 percent," Eugene says. "Without higher cigarette sales
taxes and comprehensive cigarette cessation programs, smoking rates will
remain high in
Indonesia
and increase the likelihood of cancer."
Both patent expirations and the introduction of novel NSCLC drugs will widen
the drug options for patients, even though the standard first line of therapy will
continue to be a platinum-based generic chemotherapy combination. The
NSCLC market in
Indonesia
will remain loyal to generic drugs due to the low
level of patient affordability. While rising incomes will make private insurance