Increasing Focus on Funding and R&D in Infectious Disease Therapeutics Drives Infectious Disease Therapeutics Market
Research and development (R&D) is a critical part of the business of biopharmaceuticals and pharmaceutical companies. R&D enables them to launch new products for several therapeutic applications with significant medical and commercial potential. Also, leading market players are investing in R&D to develop enhanced technologies and gain more revenue share.
The table below displays the annual funding for various disease categories and research on the basis of contracts, grants, and other funding mechanisms used across the National Institutes of Health (NIH).
Diseases and Funding
| Disease/Research Areas | 2019 (US$ Million) | 2020 (US$ Million) | 2021 (US$ Million) | 2022 (US$ Million) |
| Emerging Infectious Diseases | 2,950 | 4,867 | 5,069 | 4,318 |
| Infectious Diseases | 6,313 | 8,301 | 8,599 | 8,019 |
| Sexually Transmitted Infections | 354 | 394 | 404 | 419 |
Note: Current conversion rate is considered for the currencies.
Source: Annual Reports and The Insight Partners Analysis
The following are a few of the major projects that the manufacturers have funded:
- In June 2022, GSK plc invested US$ 1.21 billion (£1 billion) over ten years to accelerate R&D dedicated to infectious diseases. New investment supports innovation in malaria, tuberculosis, and HIV, with additional emphasis on Neglected Tropical Diseases and antimicrobial resistance.
- In March 2022, the decision by the Canadian government to provide US$ 48.07 million (CAD 60 million) to the Global Fund’s COVID-19 Response Mechanism (C19RM) was applauded by the Global Fund to Fight AIDS, Tuberculosis, and Malaria. The additional financing will assist in providing low- and middle-income nations with life-saving diagnostic procedures, medical oxygen, and personal protective equipment (PPE).
- In September 2021, a US$ 2.1 billion investment was announced by the Biden-Harris Administration to enhance infection prevention and control initiatives in the US public health and healthcare sectors. In order to address state, municipal, and territorial health agencies as well as other partner organizations that deal with infectious diseases in the US, the Biden-Harris administration has made financial investments in US rescue programs through the Centers for Disease Control and Prevention (CDC).
Thus, rising focus on R&D and funding in infectious disease therapeutics drive the infectious disease therapeutics market growth.
Infectious Disease Therapeutics Market: Regional Overview
Geographically, the infectious disease therapeutics market is segmented into North America, Europe, Asia Pacific, South & Central America, and the Middle East & Africa. In 2022, North America held the largest share of the global infectious disease therapeutics market. Further, Asia Pacific is predicted to register the highest CAGR during the forecast period. The market in the region is expected to grow owing to rising global healthcare expenditure, increasing incidence of chronic and infectious diseases, and a growing geriatric population base. Influenza, hepatitis B, and infectious diarrhea are the three common infectious diseases in China. As stated by Frontiers Public Health, the winter peak of influenza coincided with the outbreak of COVID-19 in the country in 2021. According to the World Bank Country Director of China 2020, the country is at a high risk of infectious diseases due to its growing population, wildlife abundance, habitat fragmentation, and high livestock production levels. Considering the country’s growing incidence of infectious diseases, the World Bank’s Board of Executive Directors approved a US$ 300 million loan for the Emerging Infectious Diseases Prevention, Preparedness and Response Project. This will help it reduce the risk of zoonotic and other emerging health threats. Thus, the rising incidence of infectious diseases and measures taken to control these diseases are expected to boost the China infectious disease therapeutics market in the coming years.
Industry Developments and Future Trend:
The infectious disease therapeutics market involves many small and big companies. To increase market share, the market players are opting for various strategies, such as new product launches, regional expansion, and advancements. Infectious disease therapeutics are safer and more effective with continued innovation. Therefore, the acceptance of infectious disease therapeutics is increasing among the global population.
A few of the recent developments in the infectious disease therapeutics market are mentioned below:
- In May 2023, the Food and Drug Administration (FDA) granted full approval to Pfizer’s COVID-19 anti-viral pill, Paxlovid, for adults who are at high risk of becoming severely sick with SARS-CoV-2. Paxlovid is specifically advised for the treatment of mild to moderate COVID-19 infection in adults over the age of 50 and people who suffer from certain medical conditions that are at a higher risk of being hospitalized or dying.
- In May 2021, Pfizer acquired Amplyx Pharmaceuticals to expand its anti-infective therapies pipeline. With the acquisition, Pfizer has also secured ownership of Amplyx’s early-stage pipeline that includes potential anti-viral and anti-fungal therapies. Amplyx’s lead compound, Fosmanogepix, is a novel investigational anti-fungal that is currently under development for the treatment of invasive fungal infections. Fosmanogepix has the potential to target fungal strains resistant to standard-of-care therapy.
- In January 2021, the US FDA approved CABENUVA (cabotegravir and rilpivirine) by ViiV Healthcare for the treatment of HIV-1 in virologically suppressed adolescents who are aged 12 and above, weigh at least 35 kg, and are on a stable antiretroviral regimen—with no history of treatment failure, nor known or suspected resistance to either cabotegravir or rilpivirine.
Thus, the participation of market players in product development and innovation, and an increase in the approvals of drugs are likely to fuel the growth of the infectious disease therapeutics market during the forecast period.
Infectious Disease Therapeutics Market: Competitive Landscape and Key Developments
Pfizer Inc, Gilead Sciences Inc, F. Hoffmann-La Roche Ltd, Shionogi & Co Ltd, Bayer AG, BioCryst Pharmaceuticals Inc, GSK Plc, AbbVie Inc, Merck & Co Inc, and Astellas Pharma Inc are among the leading companies operating in the infectious disease therapeutics market. The focus of these players is on expanding and diversifying their market presence and acquiring a novel customer base, thereby exploiting attractive business opportunities prevailing in the infectious disease therapeutics market.