Canada Atopic Dermatitis Therapeutics Market Analysis

Canada Atopic Dermatitis Therapeutics Market Analysis: Executive Summary

The Canada Atopic Dermatitis Therapeutics Market is at around US $0.984 Bn in 2022 and is projected to reach US $1.93 Bn in 2030, exhibiting a CAGR of 8.8% during the forecast period.

Atopic dermatitis (AD), commonly referred to as eczema, is a chronic inflammatory skin condition marked by redness, itching, and inflammation. It frequently emerges in localized patches across different body areas and can be worsened by factors such as dry skin, stress, and exposure to specific irritants or allergens. The prevalent symptoms encompass intense itching, redness, dryness, and the appearance of small, fluid-filled blisters that may discharge fluid and form crusts. Treatment typically involves a comprehensive approach, including the application of emollients for skin moisturization, topical corticosteroids to mitigate inflammation, and, in severe instances, systemic immunosuppressants. Numerous pharmaceutical companies produce medications for atopic dermatitis, notable among them being Regeneron Pharmaceuticals and Sanofi's Dupixent (Dupilumab), Pfizer's Eucrisa (Crisaborole), and Novartis's Elidel (Pimecrolimus).

It is estimated that currently around 3 million Canadians are living with AD which contributes to about 10–20% of the total population. The market is propelled by significant factors such as the growing younger population and the subsequent rise in prevalence, expanding healthcare coverage, supportive government initiatives, and consumer knowledge of the therapeutics industry. However, conditions such as adverse side effects of several drugs and a high cost of treatments like JAK inhibitors, a lack of human resources, market saturation, and others can hinder the growth and potential of the market.

The top market player, Sanofi Canada, has recently obtained approval from Health Canada for its therapeutic Dupixent for treatment of AD in children.

Market Dynamics

Market Growth Drivers

Rise in the prevalence of AD: It is estimated that approximately 10–20% of the Canadian population lives with some form of AD, accounting for around 3 million Canadians. The estimated point prevalence is about 3.5%, with children being the most affected. These numbers are expected to increase in the forecasted period, creating a larger pool of patients that will drive market growth.

Expansion of healthcare coverage: Broadening the coverage of specific atopic dermatitis (AD) medications by both public and private healthcare institutes facilitates increased accessibility to treatment for a more extensive population. The growing disposable income among Canadians enhances their capacity to afford costly atopic dermatitis (AD) medications, especially for children.

Government initiatives: The Canadian government acknowledges the influence of atopic dermatitis (AD) on individuals and healthcare systems. In response, several initiatives are being executed at both the federal and provincial levels to enhance assistance and healthcare for those affected. Associations such as the Canadian Dermatology Association, the Canadian Skin Patient Alliance, and others are actively engaged, which increases the rate of diagnosis and treatment in patients.

Market Restraints

High cost of treatments: Biologics and JAK inhibitors, major advancements in AD treatment, come with high price tags, potentially limiting access for some patients. Although certain atopic dermatitis (AD) medications are covered by public drug plans, the extent and depth of coverage differ among provinces and territories. Insufficient coverage may result in substantial out-of-pocket expenses for patients.

Lack of Human Resource: Canada is expected to experience a shortage of dermatologists, especially in rural regions, potentially restricting timely diagnosis and treatment for individuals with AD. Extended wait periods for appointments with specialists, delay the start of treatment.
Certain primary care physicians may lack the proficiency or expertise to effectively handle AD, potentially leading to poor clinical outcomes and distorting market growth.

High reliance on topical medications: While topical medications are effective in addressing mild cases of atopic dermatitis (AD), they prove inadequate for moderate-to-severe instances, possibly resulting in dissatisfaction and frustration with the treatment. The consistent application required for topical treatments can be challenging for certain patients, leading to less-than-optimal results.

Market saturation: The Canadian market for atopic dermatitis therapeutics is comparatively modest in size when compared to other nations. This could impede substantial market expansion, despite favourable factors such as an aging population and increased healthcare expenditures.

Notable Recent Updates

April 2023, Sanofi-Aventis Canada Inc. (Sanofi Canada) reported that Health Canada has granted a Notice of Compliance for the treatment of moderate-to-severe atopic dermatitis in patients aged 6 months to 5 years, whose condition is not effectively managed with topical prescription therapies with Dupixent (Dupilumab injection).

Healthcare Policies and Regulatory Landscape

Canada's regulatory framework is under the oversight of Health Canada, the nation's federal health authority. The procedure for securing drug approval in Canada entails submitting either a New Drug Submission (NDS) or a Supplemental New Drug Submission (SNDS) to Health Canada. Subsequently, Health Canada conducts a thorough assessment of the drug to evaluate its safety, efficacy, and quality. Based on this evaluation, Health Canada issues a regulatory decision regarding the drug's approval, which is communicated to the manufacturer or sponsor. Post-approval, Health Canada maintains oversight through ongoing post-market surveillance activities to monitor the drug's safety and efficacy.

The regulatory landscape in Canada is dynamic, adapting to changing times and the policies of the current government. The regulatory burden in Canada is significant, encompassing over 20,000 regulations, and it poses a financial strain on businesses, especially smaller enterprises.

Competitive Landscape

Key Players

• Sanofi
• AbbVie
• Pfizer
• Leo Pharma
• Galderma
• Valeant Pharmaceuticals
• Bausch Health
• Bayer
• Eli Lilly
• Novartis