Market Scope expects the global dry eye treatments market to grow at a healthy pace through 2022, as 2017 revenues of $3.7 billion climb to $4.9 billion. Revenues will climb most sharply in emerging markets and other developing nations where we forecast double-digit compounded annual growth rates due to aging populations, increasing wealth, and improving access to health care.
We forecast single-digit revenue growth in the US, Japan, Western Europe, and countries in our Other Wealthy Nations category due to the availability of diverse pharmaceutical and procedure-based treatment options. Factors that will provide a market boost include more refined diagnostic tools that better identify dry eye’s mechanisms and newer procedure technologies, while the pipeline of additional options will drive average sales price lower over the five-year timeframe.
The dry eye treatments market continues to offer a mix of promise and disappointment—at least in part due to the complexity of dry eye itself. This multifactorial condition can present as temporary irritation, a persistent and uncomfortable condition, or a chronic and debilitating disorder. Contributors to dry eye are diverse, and several are frequently present in a single dry eye patient. Reliable diagnosis can also be elusive. Dry eye’s disconnect between objective signs and subjective symptoms has created significant barriers for pharmaceutical candidates trying to gain approval.
However, in 2016, the US saw its first new pharmaceutical treatment in 13 years—Shire’s »Xiidra (lifitegrast)—hit the ground running. In 2017, Allergan, maker of »Restasis, introduced »TrueTear, a novel device increasing tear production. We expect new treatments to be launched in major markets by 2022, as many additional therapeutics are making their way through clinical trials. At the same time, the pharmaceutical segment will face pricing pressure from future generics and compounded therapies.
Market Scope expects the newer dry eye procedures segment to continue to drive robust double-digit growth over the next five years. While revenues in this segment will grow at a much faster pace than revenues in the Rx pharmaceutical segment, that growth will occur from a small base.
In its 6 years of availability, the J&J Vision (formerly TearScience) »LipiFlow procedure for meibomian gland dysfunction (MGD) has seen increasingly strong demand, despite its patient-pay pricing model. Additional MGD procedures have also been in use in recent years, as has Bio-Tissue’s amniotic membrane patch for damage caused by severe dry eye. Allergan’s TrueTear is undergoing a controlled rollout in select practices. In the US, the proliferation of dedicated dry eye treatment centers has increased use of these newer procedures.