U.S. Antipsychotic Drugs Market Size, Share & COVID-19 Impact Analysis, By Disease (Schizophrenia, Bipolar Disorder, Unipolar Depression, Dementia, and Others), By Drug (Risperidone, Quetiapine, Olanzapine, Aripiprazole, Brexpiprazole, Paliperidone Palmitate, and Others), By Therapeutic Class (First Generation, Second Generation, and Third Generation), By Distribution Channel (Hospital Pharmacies, Drug Stores & Retail Pharmacies, and Online Pharmacies), and Country Forecast, 2023-2030

The U.S. antipsychotic drugs market size was worth USD 7.49 billion in 2022 and is projected to grow at a CAGR of 6.4% during the forecast period. 

In terms of the U.S. mental healthcare scenario, there is a significant rise in the prevalence of psychiatric illnesses. Second and third generation drugs are considered to have robust efficacy in disease treatment. The strong usage of these medications in the treatment of psychiatric illnesses is a prominent factor for market growth. Similarly, in the U.S., certain government policies support the cost burden associated with psychiatric disorders. In the country, federal policies include the Mental Health Parity Act of 1996 and the Americans with Disabilities Act. This mental health parity defines the equal treatment of mental health conditions in insurance plans.          

• According to the National Institute of Mental Health (NIH), in 2021, the prevalence of Any Mental Illness (AMI) was approximately 57.8 million (adults aged 18 or older) in the U.S. This number represents about 22.8% of all U.S. adults.

Many companies are launching antipsychotic drugs for schizophrenia and bipolar disorder in newer forms, such as long-acting injectables, and are strongly focused on strategic acquisitions and partnerships. Such initiatives are likely to propel market expansion in the U.S.

Furthermore, the COVID-19 pandemic had a positive impact on the market due to the increased adoption of long-acting injectables (LAIs) in the U.S.

U.S. Antipsychotic Drugs Market Trends

Increasing Adoption of Long-Acting Injectables (LAIs) to Augment Market Expansion

The introduction of long-acting injectable antipsychotic medications provides an opportunity to increase treatment adherence and overall patient outcomes. The oral medications must be taken daily, whereas long-acting injections (LAIs) of antipsychotic drugs can be given less often, such as every two weeks, monthly, and every three months for only one time.

Furthermore, the benefits associated with long-acting injectable formulations are expected to boost the demand for antipsychotic drugs, which is expected to propel market growth in the future. Similarly, the increasing focus of prominent players on launching long-acting injectable formulations is expected to promote the U.S. antipsychotic drugs market growth.

• In April 2023, Teva Pharmaceuticals and MedinCell received approval from the U.S. FDA for UZEDY (risperidone) extended-release injectable suspension for treating schizophrenia in adults.

U.S. Antipsychotic Drugs Market Growth Factors

Robust Prevalence of Mental Health Disorders to Propel Market Expansion

In the U.S., there has been a constant surge in the prevalence of mental disorders. These mental disorders include depression, bipolar disorder, schizophrenia and other psychoses, dementia, developmental disorders, and autism. In addition, the rising geriatric population is contributing to several age-related mental disorders across the U.S.

• As per the estimates published by SingleCare Administrators in 2023, approximately 46.0 million people worldwide have bipolar disorder. It includes 2.8% of the U.S. population with bipolar disorder.

Such strong prevalence and rising geriatric population are expected to raise the demand for antipsychotic drugs, leading to strong U.S. antipsychotic drugs market growth during the forecast period.

RESTRAINING FACTORS

Several Side Effects Related to Antipsychotics Drugs May Hamper Market Growth

Several factors might hamper the increasing demand for antipsychotic drugs in the coming years. The robust usage of antipsychotic drugs can result in hazardous side effects in antipsychotic disease treatment.  Commonly, mental disorder treatment involves several months of recovery; it is impossible to predict which medication will work best for a specific person. In such cases, some patients might experience side effects. The common side effects the patient faces include dizziness, dry mouth, blurred vision, movement effects, fluid retention, sedation, loss of menstrual periods in women, sexual problems, and headaches.

In addition, the high costs associated with treating mental disorders hamper the adoption of antipsychotic treatment. Hence, these factors can restrict the U.S. antipsychotic drugs market growth during the forecast period.

• For instance, according to an article published by The Journal of Clinical Psychiatry (JCP) in 2022, the estimated excess economic burden of schizophrenia was USD 343.2 billion in the U.S. in 2019.  It includes USD 251.9 billion in indirect costs (73.4%), USD 62.3 billion in direct healthcare costs (18.2%), and USD 35.0 billion in direct non–healthcare costs (10.2%). In addition, the estimated burden of schizophrenia doubled between 2013 and 2019 in the U.S.

According to an article published by LibreTexts libraries, approximately 3.0% of people experience at least one psychotic episode in the U.S.

U.S. Antipsychotic Drugs Market Segmentation Analysis

By Disease Analysis

In terms of disease, the market is segmented into schizophrenia, bipolar disorder, unipolar depression, dementia, and others.

The schizophrenia segment held a dominant share of the market in 2022. The strong prevalence of schizophrenia in the U.S. has led to a high demand for antipsychotic drugs. Similarly, various product launches for such diseases are likely to augment the segment’s growth by the end of 2030.

• According to an article published by SingleCare Administrators in 2023, the estimated prevalence of schizophrenia is 1.5 million people per year in U.S. adults.

This bipolar disorder segment accounted for the second largest market share due to the high demand for these drugs to manage the symptoms of bipolar disorder. In the unipolar depression segment, the market share is expected to be the third largest due to the use of well-known antipsychotics such as Rexulti to provide some relief from depression symptoms. The dementia and others segment together accounted for a lower share due to limited adoption of these drugs across the U.S.

By Therapeutic Class Analysis

Based on therapeutic class, the market is segmented into first generation, second generation, and third generation.

The second generation segment dominated the U.S. antipsychotic drugs market share in 2022. The second generation drugs have stronger safety profiles and greater efficacy. In addition, the presence of a large number of second-generation drugs and significant product launches is likely to spur the adoption of these products, thereby propelling the segment’s growth.

• In June 2021, Alkermes received the U.S. Food and Drug Administration approval for LYBALVI, a combination of olanzapine and samidorphan. It is used to treat schizophrenia and bipolar I disorder in adults.

The third generation segment is expected to attain higher CAGR due to intense usage and product launches in the market. Moreover, the first-generation segment holds the lowest CAGR due to its lesser safety profile compared to other-generation drugs.

By Drug Analysis

Based on drug, the market is segmented into risperidone, quetiapine, olanzapine, aripiprazole, brexpiprazole, paliperidone palmitate, and others.

The others segment accounted for the maximum market share in 2022. The segment's growth was attributed to the launch of advanced products and the presence of a large number of drugs in this segment. Moreover, the growing adoption of such drugs due to strong prevalence and awareness about psychiatric diseases will likely drive the segment’s growth by 2030.

• In March 2021, Glenmark Pharmaceuticals received final approval from the U.S. FDA for its generic phenothiazine antipsychotic Chlorpromazine Hydrochloride tablets in the strengths of 10, 25, 50, 100, and 200 mg.

The paliperidone palmitate segment held a suitable share due to significant FDA approvals for advanced formulations.

By Distribution Channel Analysis

Based on distribution channel, the market is segmented into hospital pharmacies, drug stores & retail pharmacies, and online pharmacies.

The hospital pharmacies segment held the largest market share in 2022. The growth of this segment is attributed to the fact that these medications are commonly prescribed after comprehensive examinations by trained medical professionals at hospitals. In addition, suitable reimbursement policies promote the segment’s growth in the U.S.

• As of 2020, there are about 12,275 total psychiatric facilities in the U.S. Such a growing number of psychiatric facilities is expected to drive the segment’s growth.

The drug stores and retail pharmacies segment will have the second largest market share. This segment is observed as a key distribution channel as it allows for the purchase of oral prescription drugs as well as prescription refills. Online pharmacies are expected to have the highest CAGR in the coming years as they make it easier and more convenient for patients to obtain medication.

List of Key Companies in U.S. Antipsychotic Drugs Market

In terms of the competitive landscape, the U.S. antipsychotic drugs market reflects a semi-consolidated structure. The significant players in the U.S. market include Otsuka Pharmaceutical Co. Ltd. and Janssen Global Services LLC. The factors attributed to Otsuka Pharmaceutical Co. Ltd.’s and Janssen Global Services LLC’s dominance is the presence of a diverse product portfolio for antipsychotic drugs, strong R&D initiatives, and growing strategic activities.

• In April 2022, Janssen Pharmaceutical NV's patent portfolio for antipsychotic drug testing was acquired by Saladax Biomedical, Inc. (Saladax). This intellectual property portfolio includes 17 patent families, resulting in 33 U.S. patents and 296 patents in ex-U.S. countries.

Besides this, other significant players include Bristol Myers Squibb Company, Sumitomo Dainippon Pharma Co., Ltd., and Lilly. These companies are focusing on strategic activities, further strengthening their market presence.

LIST OF KEY COMPANIES PROFILED:

• H. Lundbeck A/S (Denmark)


• Otsuka Pharmaceutical Co., Ltd. (Japan)


• Janssen Global Services, LLC (Johnson & Johnson Services Inc.) (Belgium)


• Lilly (U.S.)


• ALLERGAN (AbbVie, Inc.) (U.S.)


• Teva Pharmaceutical Industries Ltd. (Israel)


• Dr. Reddy’s Laboratories Ltd. (India)


• Sumitomo Dainippon Pharma Co., Ltd. (Japan)


• Alkermes (Ireland)


• Bristol-Myers Squibb Company (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• August 2022: Acadia Pharmaceuticals Inc.’s antipsychotic drug approval for treating psychosis related to Alzheimer's disease was declined by the U.S. Food and Drug Administration.


• December 2021: Intra-Cellular Therapies, Inc. received the U.S. FDA approval for CAPLYTA for depressive episodes linked with bipolar I or II disorder in adults. It is a monotherapy and adjunctive therapy with lithium or valproate.


• September 2021: Sumitomo Dainippon Pharma’s- U.S.-based subsidiary Sunovion Pharmaceuticals Inc. and Otsuka Pharmaceutical Co., Ltd. collaborated and licensed agreement. The agreement aims to develop and commercialize the four novel candidate compounds currently developing in psychiatry and neurology.

REPORT COVERAGE

The report summarizes a detailed analysis of the market. It emphasizes vital aspects such as the prevalence of psychiatric disorders, pipeline analysis, key industry developments, new product launches, and the cost and burden of mental health disorders. Moreover, it highlights the deep analysis of first-generation antipsychotics versus second and third-generation antipsychotics and company profiles of significant players in the market. In addition, it includes market dynamics, the COVID-19 impact, and the factors expected to contribute to the growth of the market during the forecast period.

Report Scope & Segmentation