Generic drug sales growing at 12%

Generic companies and the medicines they produce are now an important part of the major pharmaceutical markets. The growth rate in the industry is increasing, nine of the top 10 fastest-growing pharmaceutical companies are generic and the demand for cheaper drugs is increasing.

In 2004, the total world market for generic prescription drugs was $39.6 billion - with a growth rate of 12%, according to a new report from Visiongain, which predicts that a similar expansion will be seen in 2005 and will then increase to achieve a peak of 14% in the period 2008-2010. With over 39 major drugs due to lose their patent protection before 2010, copy companies are prepared to gain even further market share.

By 2010, generic revenues will have reached $83.9 billion, with an overall 13.3% compound annual growth rate for the period 2004-2010, as estimated by Visiongain. This is a high growth rate for any market and it is important especially when world branded drug growth rates are beginning to falter with growth rates of only 5%-7% per annum expected for the same forecast period.