Capitalizing on Innovation in the Psoriasis Market: Strategic Opportunities in Biologics and Oral Therapies (2025–2034)

The global psoriasis treatment market is undergoing a transformative phase, driven by breakthroughs in biologics and oral therapies. As autoimmune diseases become more prevalent, the demand for innovative, targeted treatments is surging. Investors seeking long-term value must navigate a landscape shaped by rapid technological advancements, pricing pressures, and the disruptive rise of biosimilars. This analysis explores the strategic opportunities emerging from TYK2 inhibitors, IL-23/IL-17 therapies, and next-generation oral options, while evaluating how companies are adapting to competitive and regulatory challenges.

The Rise of TYK2 Inhibitors: A New Frontier in Oral Therapies

TYK2 inhibitors represent a paradigm shift in psoriasis treatment, offering oral alternatives with superior efficacy and safety profiles compared to older JAK inhibitors. Bristol Myers Squibb's SOTYKTU (deucravacitinib), the first TYK2 inhibitor approved for psoriasis, captured a $190 million market in the U.S. alone in 2024, underscoring its clinical and commercial potential. Takeda's zasocitinib, another TYK2 inhibitor, demonstrated superiority over Amgen's Otezla in Phase III trials, with plans to submit a New Drug Application (NDA) to the FDA in 2026. These drugs are not only effective for plaque psoriasis but also show promise in psoriatic arthritis and inflammatory bowel disease, expanding their therapeutic reach.

The TYK2 inhibitor market is projected to grow substantially by 2034, fueled by robust clinical pipelines and expanding indications. Dual-target inhibitors, which modulate multiple pathways while minimizing side effects, are further enhancing the class's appeal. However, challenges remain, including safety concerns and payer resistance to high acquisition costs. Companies must balance innovation with affordability to sustain market penetration.

IL-23/IL-17 Therapies: Dominating the Biologics Landscape

IL-23 and IL-17 inhibitors have become cornerstones of psoriasis treatment, driven by their ability to deliver durable responses with fewer systemic side effects. The global psoriasis drugs market, valued at $21,116.1 million in 2024, is expected to grow at a compound annual growth rate (CAGR) of 10.9% to $39,113.8 million by 2030, with IL-23 inhibitors leading the charge. IL-17 inhibitors accounted for 38.07% of 2024 revenue, while IL-23 inhibitors are projected to grow at the fastest CAGR (15.89%) through 2030, driven by new entrants like Johnson & Johnson's and expanded indications such as hidradenitis suppurativa.

AbbVie's Skyrizi (risankizumab) has carved a significant market share in the biologic segment, leveraging its efficacy and favorable safety profile. However, biosimilars for IL-23 and IL-17 pathways are emerging as cost-effective alternatives, potentially reshaping patient and physician preferences. For instance, the launch of , a biosimilar for ustekinumab, achieved a 53% market share within months of its 2025 debut. While biosimilars introduce pricing pressures, they also expand access to advanced therapies, creating a dual-edged sword for innovators.

Next-Gen Oral Therapies: Convenience Meets Efficacy

Oral therapies are gaining traction as patients and providers seek alternatives to injectables. TYK2 inhibitors like SOTYKTU and zasocitinib are outperforming traditional oral treatments such as Otezla, with up to one-third of patients achieving complete clearance in trials. Other emerging candidates, including SFA-002 (SFA Therapeutics) and ESK-001 (Alumis), are advancing through clinical trials with mechanisms targeting multiple inflammatory cytokines. These therapies are redefining the competitive landscape, emphasizing convenience without compromising efficacy.

The Inflation Reduction Act in the U.S. is set to intensify pricing pressures, with Medicare negotiations for drugs like ENBREL and OTEZLA beginning in 2026. Companies must adopt agile pricing strategies, such as tiered pricing or patient assistance programs, to maintain profitability while addressing payer demands. Additionally, combination therapies-pairing oral agents with biologics-are emerging as a strategy to enhance outcomes and justify premium pricing.

Biosimilars: Disruption and Opportunity

The biosimilars market is reshaping the psoriasis landscape, with a projected CAGR of 11.21% from 2024 to 2034. TNF-alpha inhibitors dominate this segment, with biosimilars for adalimumab (e.g., Hyrimoz) offering wholesale acquisition cost (WAC) discounts of up to 86% compared to Humira. Formulary strategies favoring biosimilars are driving cost savings for payers, though manufacturers like AbbVie are countering with product hopping (e.g., shifting to Skyrizi) to protect market share.

For investors, biosimilars present both risks and opportunities. While they erode margins for branded biologics, they also create demand for next-gen therapies that biosimilars cannot replicate. Companies investing in dual-target inhibitors or oral therapies with differentiated mechanisms are well-positioned to thrive amid this disruption.

Strategic Responses by Key Players

Leading firms are adopting diverse strategies to navigate the evolving market:- Bristol Myers Squibb is leveraging SOTYKTU's first-mover advantage while addressing safety concerns through real-world evidence studies.- Takeda is accelerating zasocitinib's approval and expanding its pipeline into psoriatic arthritis, capitalizing on its $4 billion acquisition of Nimbus Therapeutics.- AbbVie is defending its IL-23 franchise with Skyrizi while exploring biosimilar partnerships to offset Humira's erosion.

Collaborations and R&D investments are critical. For example, partnerships between biotech firms and big pharma are accelerating the development of oral small molecules, while data-driven formulary strategies are optimizing market access.

Conclusion: A Market of Resilience and Innovation

The psoriasis market is poised for sustained growth through 2034, driven by innovation in TYK2 inhibitors, IL-23/IL-17 therapies, and next-gen oral options. While biosimilars and pricing pressures pose challenges, they also create opportunities for companies that prioritize differentiation, affordability, and patient-centric strategies. Investors should focus on firms with robust pipelines, agile pricing models, and a commitment to addressing unmet medical needs. In this dynamic environment, long-term value will belong to those who can harmonize innovation with accessibility.