Generic drug market in Canada expected to reach C$9.4 billion in 2013

Canada has established itself as one of the largest pharmaceuticals markets globally and provides tremendous opportunity for generics. In 2009, generics accounted for more than 54% prescriptions and around 24% sales of the total pharmaceutical market.

Patent expiration of branded drugs, a rapidly aging population and government support through cost reduction measures are some of the factors that are boosting the industry growth. The market for generic drugs is expected to reach C$9.4 billion ($9.2 billion) in 2013 from C$5.5 billion in 2009, expanding at a compound annual growth rate (CAGR) of more than 14% during the period. According to other sources, the total prescription drugs market in Canada was estimated at $17.7 billion last year.

According to a report titled Generic Drug Market in Canada added to the offering of Research and Markets, steps taken by the provincial governments in ensuring availability of drugs at affordable cost and billion dollar drug patent expiries will prove to be a major growth booster for the industry. Besides, the government is adopting measures that will enhance the supply proportion of generic drugs and rebates offered (to pharmacies) will augment revenue patterns.