RNCOS Insulin Delivery Systems Market Analysis (2007-2010)

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5.2 Global Insulin Market

The advent of insulin revolutionized the treatment of diabetes and must be one of the most
outstanding achievements of twentieth century medicine. For the past 75 years, subcutaneous
injections have been the only route of delivering insulin to diabetic patients. During this time,
numerous attempts have been made to explore alternative routes for systemic insulin
administration; yet, none of these systems fully mimics the physiology of insulin secretion.

In view of the growing diabetic population, the global insulin market reached at US$ 8.55
Billion in 2006 from US$ 7.5 Billion in 2005, a growth of 14%.

Figure 5-3: Worldwide - Insulin Market (in Billion US$), 2005 & 2006

9
8.55

8
in Billion US$

7.50

5
2005 2006

Source: Sem Biosys

Growth is projected to continue at that rate or more at least until 2010, when insulin sales
are projected to touch US$ 14.5 Billion. Much of this growth will be fueled by the introduction
of more and more insulin analogs.

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Age (40-59) 18239.4

Age (60-79) 10116.4

Total Diabetic Population 35503.6

Source: IDF

The number of diagnosed diabetes patients in India in 2003 was 35503.6 Thousand. This value
was expected to increase to 39204 Thousand by 2006 at a growth rate of 10.42%.

Figure 5-4: India - Number of Diagnosed Diabetes Patients (in ‘000), 2003-2006E

40000
39204.0
39000
37929.5
38000
36696.5
in ‘000

37000

36000 35503.6

35000

34000

33000
2003 2004E 2005E 2006E

Source: IDF

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However, in US, majority of the patients use syringes rather then pen devices as treatment
with insulin is much more conservative in the U.S. than in Europe or Japan, most of the
patients in the US visit family doctors rather than endocrinologist, family doctors recommend
their patients the traditional methods of delivery such as syringes rather then pens again in
the U.S patients inject themselves only once or twice during the day, while in Europe or
Japan they inject themselves three or four times thus With more frequent injections the
greater convenience of pens become more apparent.

Cost is also a factor why many patients are reluctant to switch to insulin pens. Insulin pens
are far more costly than the traditional syringes. Patients in the developing countries such as
India and China are quite price conscious, thus insulin pens represent only a very small
market share in these markets.

In US, the percentage of insulin users using pen devices increased to 21% in 2005 but is again
estimated to decrease to 19% percent in 2006 with the launching of inhaled insulin delivery
devices. The market share for pens is forecasted to fall even further in the future with the
launch of other oral insulin devices.

In Europe, pens command a lion’s share for insulin delivery, the percentage of insulin users
using pen devices increased to 82.1% in 2005 but is again estimated to decrease to 80.2% in
2006 with the launching of inhaled insulin delivery devices. Just as in US, the market share for
pens is forecasted to fall even further in the future with the launch of other oral insulin
devices.

Japan is one of the largest Insulin market in the world after US and Germany. As in Europe,
insulin pens command a huge share for insulin delivery in Japan.

In Japan, the percentage of insulin users using pen devices increased to 85% in 2005 but with
the launch of inhaled insulin delivery devices, the market share is estimated to decrease to
83.9% in 2006. This market share is forecasted to fall even further in the future with the
launch of other oral insulin devices.

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Figure 6-5: US, Europe & Japan - Percentage of Insulin Users using Pen Devices (2003-2006E)

90 83.0 80.0
84.0 82.1 85.0 80.2
83.9
77.9
80
70
60
50
(%)

40
30 20.0 21.0 19.0
20
7.0
10
0
2003 2004 2005E 2006E

US Europe Japan

Source: YPSOMED

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7.1 Drivers

7.1.1 Increasing Number of Diabetic Patients

The population of diabetic patients is increasing at a rapid rate with an estimated 246 Million
diabetes patients in 2006 and this population is likely to reach 380 Million by 2025. With
growing number of diabetes patients around the world, the demand for insulin has increased
from 7.55 Billion in 2005 to 8.5 Billion in 2006 thereby increasing the demand of insulin
delivery devices.

7.1.2 Convenient & Less Painful Modes of Insulin Delivery

Modes of Insulin delivery are changing very rapidly as more convenient and painless methods
of insulin delivery devices now available in the market. Diabetics were earlier reluctant to
use the insulin syringes due to the pain and complications associated with the devices.
However, the present pen, needle-free and inhalable devices are hardly associated with any
pain and are easier to use then the traditional syringes. The future also promises to have
more convenient devices with oral insulin delivery devices in the pipeline.

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