Can Merck Field a Psoriasis Blockbuster?

Targeting psoriasis, rheumatoid arthritis, and other immune diseases has created some massive markets over the last decade. How massive? The market was sized up at an estimated $72.2 billion in 2010, according to BCC Research -- and growth isn't slowing any time soon. That's good news for patients, too. The pharmaceutical industry's fascination with an improved understanding of biologics has led to dozens of drugs that treat the underlying causes of diseases, rather than small molecules of years past that only treated symptoms.

Few companies haven't joined the rush to develop biologics and novel small molecule classes to treat immune diseases. While some companies got a big head start over the field, next-generation therapies are being developed in pipelines across the industry. Merck (NYSE: MRK) is one company looking to capitalize on the trend and will shortly begin phase 3 trials on its leading psoriasis biologic therapy candidate. Going by the catchy pipeline name of MK-3222, the drug has huge potential if it ever receives approval from the Food and Drug Administration, or FDA.

About that competition I mentioned...Older therapies aren't exactly losing their grasp on the markets they took by storm just yet. A quick look at 2012 sales data from the first three biologics approved that work by inhibiting the TNF-alpha protein -- integral to immune system communication -- shows exactly that.

Company

Drug

2012 Sales

Johnson & Johnson (NYSE: JNJ)

Remicade

$6,139 million

Amgen (NASDAQ: AMGN)

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Can Merck Field a Psoriasis Blockbuster?