The current rate of growth in the generics market puts it on pace to outgrow branded pharmaceuticals, which should only grow by single digits in 2004, according to business intelligence firm Cutting Edge Information http://www.PharmaGenerics.com.
Currently, the world generic drug market is approaching $40 billion. Over the next five years, the market is expected to grow 10-15% annually.
The growth is fueled by recent and future patent expirations of branded products that generated more than $37 billion in sales in 2002.
Pharmaceutical Brand Defense, examines recent regulatory developments and trends in the generics industry. The report also provides a menu of patent and brand defense strategies - including line extensions, OTC switching, flanking generics, and licensing agreements - assessed against different product and lifecycle settings.
Cutting Edge Information studied top notch companies, including Merck, Pfizer, AstraZeneca, Aventis, TEVA Pharmaceuticals, Ranbaxy, Genentech and GlaxoSmithKline. "If the focus on affordable medicines continues, which experts expect for some time, the US will be a battlefield over the next 5 years," said Jon Hess, senior analyst at Cutting Edge Information. "Precedent will be set and new legislation created."
Nearly 50% of all U.S. prescriptions today are filled with generic drugs, up from only 18.6% in 1984. U.S. sales of generic pharmaceuticals increased from $12 billion dollars in 2001 to $15.4 billion dollars in 2002. By 2005, analysts project that figure will top $22 billion.
Cutting Edge Information detailed five principles to successfully combat generic competition in the pharmaceutical industry in its report:
- Protect existing brands from patent challenges and generic threats at all costs
- Switch patients to next generation drugs to balance existing defense strategies
- Assimilate public, political, and regulatory changes into generics planning
- Initiate generics defense planning earlier and support it with necessary resources
- Explore licensing, deal-making and market-crossover strategies as viable solutions
To download a free summary of this 164-page report, visit http://www.PharmaGenerics.com. For more information or to learn about other Cutting Edge Information research, contact Diana Borja at [email protected] or 919-433-0219. For media inquiries, call Tricia McGovern at 919-433-0217 or [email protected].