Monoclonal Antibody Therapy Drug Market on Trajectory Towards $140 Billion

FN Media Group Presents Microsmallcap.com Market Commentary

NEW YORK, April 4, 2019 /PRNewswire/ -- Timelines on the next generation of antibody discovery may be getting shorter. Potentially incentivized by a new study on the monoclonal antibody therapy market, analysts recently projected a double-digit 10.5% CAGR by 2022, and revenues to touch $140 billion. Driving this surge is the development of new therapeutic drugs from Big Pharma giants such as AbbVie Inc. (NYSE:ABBV), Pfizer Inc. (NYSE:PFE), Johnson & Johnson (NYSE:JNJ) and Thermo Fisher Scientific Inc. (NYSE: TMO), as well as from contract research organizations (CROs) such as ImmunoPrecise Antibodies Ltd. (TSX-V:IPA) (OTC:IPATF).

Working hand in hand, Big Pharma has been increasingly leaning on CROs to help take care of the drug development. Each step along the way to discovery could require a different CRO—unless it's done by full-service therapeutic drug developers ImmunoPrecise Antibodies Ltd. (IPA) (IPATF) who uniquely cover each step of the process from start to finish.

Founded in Victoria, Canada, ImmunoPrecise Antibodies Ltd. (TSX.V:IPA) (OTC:IPATF) recently expanded its footprint into the highly active pharmaceutical center, Massachusetts. The company formally launched a newly formed wholly-owned, Cambridge Massachusetts-based subsidiary, called Talem Therapeutics.

The main mission of Talem is to focus on the discovery and development of next-generation, fully-human, monoclonal therapeutic antibodies targeting neurology, immuno-oncology, gastroenterology, inflammation, and rare/specialty diseases. Using proprietary antibody discovery platforms and innovative technologies, Talem will be producing a rich pipeline of high quality and distinct antibodies.

Research Leading to Discoveries 

Domestically, the US drug industry spends approximately $45 billion annually on research and development (R&D). Majority of the research is going into biologics (vaccines, blood components, gene therapy, etc)—a sector that's growing the entire global pharmaceuticals market at a CAGR of 5.8%, from US$934.8 billion in 2017, to a projected US$1.17 trillion by 2021.

Embedded within the entire market is a niche that is still possibly being underserved. While the antibody discovery CRO segment topped over US$100 billion in 2017, it's projected to grow to US$125 billion by 2020.

For CROs, success comes from increased exposure, as each new contract with Big Pharma enhances valuable and lucrative relationships. The CRO business is good, as exemplified by ImmunoPrecise Antibodies Ltd. (IPA) (IPATF) who saw its revenue increase in 2018 by 106%. The momentum has continued, as the company recently reported record Q3 2019 results, with revenues up 228% for the first 9 months of fiscal 2019.