Anti-obesity drug market to more than triple by 2019; report

The anti-obesity drug market, which is dominated by off-patent orlistat, Swiss pharma major Roche’s (ROG: SIX) Xenical brand, is expected to increase from $750 million in 2012 to $2.6 billion in 2019, at a Compound Annual Growth Rate (CAGR) of 20.7%; but the small number of therapeutics in late-stage development will limit the market growth way below its potential, says a new report from business intelligence provider GBI Research.

According to the company’s latest report, the forecast growth can be attributed to the anticipated performance of the recently-approved Qsymia (phentermine and topiramate extended-release from Vivus; Nasdaq: VVUA), which has proven to be superior in terms of efficacy for the long-term treatment of obesity. But the successful sales of Qsymia will be dependent on it being proven safe in the long-term and remaining on the market - a trend not historically seen with obesity drugs.

Only 3% of the obesity drug pipeline is currently in the late stages of development, with just one drug candidate in the pre-registration level and two in Phase III. This limits the number of drugs with the potential to be approved, as well as market growth.