Rx for Growth? Why Generic Drugs Are Gaining Traction

Rx for Growth?

The trillion-dollar pharmaceutical industry has historically been dominated by a few major companies that create and supply the most important branded prescriptions on the market. Recent trends, however, point to the growth of the newest pharma blockbusters: generics.

Today, approximately 60% of Americans take prescription drugs;[1. “Trends in Prescription Drug Use Among Adults in the United States from 1999-2012.” The Journal of the American Medical Association, November 3, 2015] generics account for 88% of these prescriptions.[2. “Generic Drug Savings in the U.S. Seventh Annual Edition: 2015.” Generic Pharmaceutical Association, https://www.gphaonline.org/media/wysiwyg/PDF/GPhA_Savings_Report_2015.pdf] Generics are also gaining traction globally, accounting for 55% of prescriptions in the EU [3. Regulatory Efficiency Report 2015.” European Generic and Biosimilar Medicines Association, https://www.egagenerics.com/EGA_Regulatory_Efficiency_Report/#1/z]  and 47% in Japan. [4. “Country Overview: Generic Share (%) by the Ministry of Health, Labour and Welfare Drug Price Survey.” Japan Generic Medicines Association, September, 2013, https://www.jga.gr.jp/english/country-overview/genric-share-by-mhlw/] Generic pharmaceutical use in emerging markets is also on the rise, as improved access to health care and regulations favoring the use of lower cost drugs enhance growth potential in developing countries. The Indian pharmaceutical market, in particular, represents a significant opportunity for generic drug manufacturing; it is the world’s third-largest pharmaceutical market in terms of volume and 13th largest in terms of value.[5.  “India’s pharma sector pips global growth: report.” Live Mint, December 1, 2015, https://www.livemint.com/Industry/aB3apnr59a8ZFP3aXawuYM/Indias-pharma-sector-pips-global-growth-report.html]

View more information: https://marketrealist.com/2016/03/rx-for-growth/

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