The Generic Industry Will Benefit From Lack of Innovative Drugs says visiongain Report

San Francisco, CA and London, UK; 25 May 2006: “The World Generics Market, 2006-2011”. In 2005 the global market was worth $45billion, an increase of almost 15% on the year before. Visiongain forecasts similar growth over the next five years, as many of the most successful blockbuster drugs of recent years will lose patent protection in key markets.

By 2009 at least $80bn worth of revenues from the current leading 200 drugs will be exposed to high levels of generic competition due to patent loss. The generic pharmaceutical industry is extremely well placed to take advantage of this, especially the large global companies such as Teva, Sandoz and Merck KgaA. The lack of any successful 3rd generation drugs in successful markets such antidepressants and cholesterol treatments will further add to the woes of the branded pharmaceutical market.

“The current business model pharmaceutical requires the continued development of novel improved treatments”, says Dr Tom Newton pharmaceutical market analyst at visiongain. “When this doesn’t happen then the major beneficiaries are the generics companies”.

Another major contributory factor to the growth of the generic market is that there are increasing cost pressures on governments and healthcare providers around the world. Encouraging the use of generic medicines is an obvious way to cut costs and even countries that have not had strong generics markets in the past have started to introduce pro-generic legislation

The future will also contain significant challenges for the generic industry. The most pressing issue for the market is the lack of any clear guidelines for generic biotech drugs (biogenerics) in the US. The increased use of authorised generic strategies by big Pharma is also causing concerns amongst generic companies


ENDS
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Background:
Visiongain is one of the fastest growing and most innovative independent media companies in Europe today. Based in London, UK, visiongain produce a host of business-2-business conferences, newsletters, management reports and E-Zines focusing on the Financial markets, the Pharmaceutical, Telecoms industries and the Defence sector.

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