Evolving Dermatological Landscape: The Role of Topical Drug Products
New topical drug products, such as topical Janus kinase (JAK) inhibitors, have shown effectiveness comparable to established biologic therapies. Consequently, while biologic therapies have gained significant attention, topical drug products remain commercially viable. For instance, plaque psoriasis (PsO) is a condition with numerous effective treatment options, including biologics. This is a prevalent condition with effective treatment options, including biologics. Up to 40% of the pipeline drugs for psoriasis (PsO) are still designed for topical administration.
The revenue from topical drugs is on the rise. For instance, the global topical drug delivery market was valued at $88.54 billion in 2022 and is projected to reach $131.87 billion by 2024. It is expected to grow to approximately $238.38 billion by 2033, with a compound annual growth rate (CAGR) of 6.8% from 2024 to 2033.
Distribution of route of administration for plaque psoriasis drugs
Fig 3: Percentage of different formulations of drugs for plaque psoriasis
Topical drug delivery is a preferred option for treating skin diseases as it directly targets the affected area and offers several advantages over other methods of administration
Major Market Leaders in Dermatology
The dermatology market is among the fastest-growing segments of the healthcare industry. The global demand for skincare and dermatological products is rising, with India being one of the largest consumers. As leading dermatology companies gain visibility, the need for skincare solutions continues to grow. These companies offer a diverse range of products that address issues such as acne, psoriasis, atopic dermatitis, eczema, rosacea, fungal infections, skin cancer, and other skin concerns. Increasingly, consumers worldwide are seeking products from top dermatology firms to manage their skin issues. Below is a list of the top 10 dermatology companies currently dominating the market.
1. AbbVie Inc
AbbVie is committed to tackling the most significant challenges related to skin issues. With extensive experience in treating skin conditions and supporting patients, they emphasize a customer-centric approach in their product development to achieve the best outcomes. Their strength lies in delivering high-quality medicines while promoting new scientific discoveries to provide effective solutions for complex diseases. Their services are highly sought after globally, reflecting their dedication to producing top-quality products tailored to customer needs. In 2023, AbbVie reported a total revenue of $54.318 billion, reflecting a 6.4% decrease compared to the previous year. Among their key products, Rinvoq (for atopic dermatitis) and Dupixent (also for atopic dermatitis) achieved global sales of $3.97 billion and $11.59 billion, respectively.
Table 1- Pipeline analysis of dermatology drugs for Abbvie
2. Pfizer
Pfizer Inc. is a U.S.-based global biopharmaceutical company focused on research and development. The company is involved in the discovery, development, manufacturing, marketing, sales, and distribution of biopharmaceutical products. Within its dermatology division, Pfizer offers treatments for various conditions, including acne, atopic dermatitis, eczema, melanoma, psoriasis, and rosacea. Pfizer has announced its full-year financial results for 2023, showing total revenues of $58.5 billion, a 42% decline from $100.33 billion in 2022. This decrease is primarily due to a 41% drop in operational performance and a 1% negative impact from foreign exchange rates. The revenue decline was also influenced by lower global sales of its COVID-19 vaccine, Comirnaty, and the antiviral treatment, Paxlovid. Meanwhile, Xeljanz for psoriatic arthritis generated $1.703 million in revenue for 2023. Pfizer anticipates total revenues between $61 billion and $64 billion, an increase from its previous forecast of $59.5 billion to $62.5 billion.
Table 2- Pipeline analysis of dermatology drugs for Pfizer
3. GSK plc
GSK plc, previously known as GlaxoSmithKline plc, is a U.K. based multinational pharmaceutical and biotechnology company founded in 1715. The company focuses on the research, development, and manufacturing of pharmaceutical products, vaccines, and consumer healthcare items. Its subsidiary, Stiefel, specializes in dermatology and offers innovative products such as Clindoxyl. In 2023, Stiefel achieved its third-highest net revenue ever, reaching $4.35 billion, highlighting the resilience and diversity of their business model in a challenging market. For the first three quarters of 2024, net revenue increased by 13% to a record $3.6 billion, fueled by ongoing growth in Global Wealth, improvements in their Institutional business, and stabilization of net interest income. The business momentum is continuing, with expectations for further growth in both revenue and profits in the fourth quarter and into 2025
Table 3- Pipeline analysis of dermatology drugs for GSK
4. LEO Pharma
LEO Pharma is a highly regarded dermatology company dedicated to producing highquality products aimed at reducing skin-related diseases. They operate ethically and prioritize the quality of care for patients dealing with various skin issues. Their extensive product range delivers effective results and includes treatments for psoriasis, eczema, acne, wrinkles, and other skin infections. In 2023, LEO Pharma achieved double-digit revenue growth, driven by strong sales in dermatology, generating net sales of DKK 11.4 billion. Revenue increased by 10% (CER) to DKK 3,057 million in Q3 2023, compared to DKK 2,791 million in Q3 2022. Reported growth for Q3 2024 also stood at 10%. Dermatology revenue rose by 12% (CER) to DKK 2,479 million in Q3 2024, up from DKK 2,230 million in Q3 2023, largely due to robust sales of Adtralza®/Adbry® (tralokinumab) for atopic dermatitis (AD)
Table 4- Pipeline analysis of dermatology drugs for Leo Pharma
5. Sun Pharmaceutical Industries Ltd
Sun Pharmaceutical Industries Ltd is one of the largest pharmaceutical companies in the world, specializing in the manufacture of dermatological products. They offer a wide and diverse range of products that effectively address various skin issues, with strong demand in over 100 countries and consistent customer appreciation. In 2023, Sun Pharma reported a total revenue of Rs. 445,202 million and experienced significant growth in 2024 with total income reaching Rs. 498,510 million. This growth was driven by increased sales in Western Europe, particularly in the Specialty segment, and the rising sales of Ilumya (for plaque psoriasis) in Australia and Japan. Global Specialty revenues saw a robust 19.3% increase, totaling US$ 1,039 million. Ilumya performed well, rising by 21.7% to US$ 580 million. Another key contributor to this growth was Levulan Kerastick+BLU-U, a topical treatment that uses blue-light precision to minimize exposure to deeper tissues.
Table 5- Pipeline analysis of dermatology drugs for Sun Pharmaceutical Industries Ltd
6. Galderma S.A
Galderma S.A is the largest dermatology company, offering a wide array of products. With decades of experience, they leverage innovative approaches to develop high-quality dermatological solutions aimed at providing sustainable remedies for various skin conditions. In 2023, Galderma achieved an impressive net sales growth of 8.5% in constant currency compared to 2022, exceeding $4 billion in revenue for the first time. This reflects strong momentum and broad-based growth across all product categories and regions, driven by the company's focus on volume expansion and positive product mix and pricing contributions. Additionally, Galderma reported a 202-basis point increase in its Core EBITDA margin during the same period, highlighting the effectiveness of its premiumization strategy, structural savings from its multi-year transformation program, and the normalization of investments in key projects. In terms of product categories, Injectable Aesthetics continued to show robust growth, gaining market share in neuromodulators and biostimulators. The company's flagship brands, Cetaphil and ALASTIN, significantly contributed to growth in Dermatological Skincare, with Cetaphil achieving over $1 billion in sales for the first time. Therapeutic Dermatology also experienced growth, fueled by both U.S. and international markets. In the first nine months of 2024, Galderma recorded net sales of $3.259 billion, representing a year-on-year growth of 9.2% at constant currency, primarily driven by volume growth along with a favorable product mix. This growth was widespread across all product categories and geographies, with notable sustained double-digit increases in both Injectable Aesthetics and Dermatological Skincare.
Table 6- Pipeline analysis of dermatology drugs for Galderma
7. Johnson & Johnson Services Inc
Johnson & Johnson Services Inc, a subsidiary of Johnson & Johnson, specializes in consumer healthcare products. The company offers a diverse range of healthcare items in areas such as feminine hygiene, baby care, facial skincare, beauty, wound care, cough and cold remedies, oral care, and over-the-counter products. It collaborates with experts and dermatologists to develop innovative solutions, including treatments for acne and eczema, gentle skin cleansers, moisturizers that restore the skin barrier, and sunscreens that protect against premature aging, inflammation, and skin cancer. In 2023, the company achieved total sales of $85,159 million. According to Johnson & Johnson's latest financial reports, its current revenue for 2024 is ₹7.371 trillion.
Table 7- Pipeline analysis of dermatology drugs for Johnson & Johnson Services Inc
8. Roivant Sciences Ltd.
Roivant Sciences Ltd. is a biopharmaceutical company focused on developing medicines and healthcare technologies for patients. Its subsidiary, Dermavant Sciences, specializes in creating treatments for immuno-dermatological conditions such as psoriasis, atopic dermatitis, vitiligo, primary focal hyperhidrosis, and acne. On May 24, 2022, Dermavant announced that the U.S. Food and Drug Administration (FDA) approved VTAMA (tapinarof) cream, 1%, an aryl hydrocarbon receptor agonist for the treatment of plaque psoriasis in adults. This approval makes VTAMA the first and only steroid-free topical treatment in its class to gain FDA approval. For the Q4 2023 and the fiscal year ending March 31, 2024, Roivant reported net product revenues of $19.3 million and $75.1 million, respectively. By 14 May 2024, over 385,000 prescriptions for VTAMA had been issued by more than 15,300 unique prescribers for psoriasis. In 2023, the company generated $0.12 billion in revenue, a significant increase from $0.42 billion in 2022. According to Roivant Sciences' most recent financial reports, the company's current revenue (trailing twelve months) stands at $0.15 billion.
Table 8- Pipeline analysis of dermatology drugs for Roivant Sciences
9. Amgen
Amgen is dedicated to producing products that leverage innovative and highly differentiated technologies. Their offerings help patients address skin issues while also contributing to social and economic well-being. This U.S.-based multinational company focuses on developing and manufacturing solutions for various skin-related concerns. In 2023, Amgen reported total revenue of $28.2 billion, a 7% increase from 2022, with non-GAAP earnings per share rising 5% to $18.65. Looking ahead, Amgen projects total revenues for 2024 to be between $33.0 billion and $33.8 billion.
Table 9- Pipeline analysis of dermatology drugs for Amgen
10. DermBiont
DermBiont is a highly regarded pharmaceutical company that produces a range of dermatological products for skin-related issues. Their offerings are well-received by customers and are in demand in over 50 countries. Based in the U.S., DermBiont specializes in biotech products aimed at addressing skin problems. The company has raised $35.2 million in a Series B financing round to advance two of its dermatology candidates through Phase II trials. This funding includes $27.1 million from the first close of the Series B and $8.1 million from converting outstanding notes. The Series B round was led by new investor Double Point Ventures, with participation from existing investors such as Viking Global Investors, Civilization Ventures, and Olive Tree Capital.
Table 10- Pipeline analysis of dermatology drugs for DermBiont