Economics of Generics, according to Zacks

Besides the multitude of the world’s poor, the aging population (2 billion people of 60 years or above by 2050) is a growing public policy concern, given the high health care and related costs, says Zacks Equity Research analyst Prabuddha Chaudhuri in an overview of the economics of generics.

The West worries about age-related diseases, such as osteoporosis, arthritis and eye ailments. Concerns in Asia (India in particular) and Latin America include lifestyle diseases, such as diabetes and heart ailments and hygiene-related illnesses.

The deprived typically suffer from hygiene-related illnesses, like malaria, cholera and tuberculosis. So long believed to have been eradicated, these diseases have reappeared in a more virulent form. Tuberculosis for example, has already affected one-third of the world’s population and affects one human being every second. Also disturbing is the increasing incidence of HIV/AIDS.