Generic Drugs Market Impelled by Extensive Research and Development Programs

Generics are bioequivalent to off-patented branded drugs in terms of dosage, form, strength, quality, effect, intended use, side effects, and route of administration. They contain the same active ingredients as the original formulation, work in the same way and in the same amount of time. Generic drugs are less expensive than their branded counterparts as they do not require extensive research and testing, which saves both time and money. According to IMARC Group, the global generic drugs market size was worth US$ 340 Billion in 2018.

Favorable government regulations catalyzing market growth

Governments across the globe are making constant efforts to promote the sales of generic drugs to reduce healthcare costs. For instance, the Drug Price Competition and Patent Term Restoration Act was introduced by the Government of the United States to endorse generics and bring in competition for branded drugs. Under this act, drug manufacturers are encouraged and rewarded for challenging a patent by providing them 180-days market exclusivity. Moreover, many leading generic drug companies are accelerating their research and development activities (R&D) to develop complex and differentiated products. This is carried out either through mergers and acquisitions (M&A) or expanding their capabilities. For example, the acquisition of Actavis Generics by Teva Pharmaceutical has improved its international commercial opportunities and significantly enhanced the global scale of its sales and R&D platforms. As a result of these factors, the global generic drugs market is expected to reach a value of US$ 475 Billion by 2024, expanding at a CAGR of around 5.3% during 2019-2024.

Cardiovascular diseases represent the leading therapy area

On the basis of the therapy area, the market has been segmented into central nervous system (CNS), cardiovascular, dermatology, genitourinary/hormonal, respiratory, rheumatology, diabetes and oncology. Amongst these, cardiovascular diseases dominate the market, holding the majority of the total market share. Several drug manufacturers are developing off-patented medications for the treatment of cardiovascular disorders.

Oral generic drugs dominate the global market

At present, oral generic drugs represent the biggest segment, accounting for the majority of the overall market share. These drugs can be swallowed, chewed or placed under the tongue to dissolve. Different types of oral generics including tablets and capsules, liquid medications, and sublingual and buccal medication. They are generally preferred owing to the convenience associated with their administration, which requires minimal or no medical assistance. Oral drugs are followed by generic injectables, dermal, inhalers and others.

Generic drugs are majorly distributed through retail pharmacy stores

The market has also been categorized based on the distribution channel into retail pharmacy stores and hospitals. At present, retail pharmacy stores are the largest distribution channels for generic drugs across the globe.

The United States enjoys the leading position in the global generic drugs market

The United States exhibits a clear dominance in the market due to the increasing prevalence of chronic diseases coupled with incentives offered to physicians and pharmacists to promote generic drug usage. Other major regions include China, Brazil, Germany, France, India, the United Kingdom, Japan, Canada and Italy.

The industry is fragmented in nature with the presence of a large number of manufacturers in the market. Some of the top manufacturers are Teva Pharmaceuticals, Mylan NV, Sandoz (Novartis), Hospira (Pfizer Inc.), Sun Pharmaceutical Industries Ltd., Fresenius Kabi Ag., Lupin, Endo Pharma, Aurobindo Pharma, and Aspen Pharmacare.

About IMARC Group: IMARC Group is a leading market research and consulting company that offers management strategy and market research worldwide. The company has done multiple projects on the generic drugs industry, which has enabled the clients to set up and expand their businesses successfully. Some of the company’s offerings include:

• Market Research
• Plant setup
• Plant Expansion
• Marketing and sales
• Procurement and Distribution
• Innovation and Product Development

Imarc Group is a leading market research and consulting company that offers management strategy and market research worldwide.