Global generic drug markets will grow to $221 billion by 2016; Espicom

The economic recession has been a double-edged sword for the international generic drugs business. Driven by the need to control costs, the use of generic drugs has grown considerably in recent years, even in markets where traditionally they have not been favored.

At the same time, health payers have been putting pressure on the sector to squeeze margins even tighter. While five-year growth is forecast, increasing demand and lower margins are just two of the issues the sector must grapple with. According to a new Espicom study, titled The World Generic Market Report, the global markets for generic drugs will continue to grow despite cost containment pressures from health payers in many markets.

While the generic market will grow overall, distribution will vary. Growth in the USA is the most obviously impressive, which the report estimates will rise to $104.1 billion by 2016, due to expiry of patents on major drugs such as Pfizer’s all-time blockbuster cholesterol lowerer Lipitor (atorvastatin) and Eli Lilly’s schizophrenia drug Zyprexa (olanzapine), increased pressure for generic use from Medicare drug plans, and the gradual emergence of the biosimilar market.