Global generic drugs market growing at 10.53% CAGR to 2020

The global generic drugs market 2016 report forecasts patent expiry of drugs worth $150 billion by 2020, which a key growth driver for top-selling drugs as well as new, inexpensive generic drugs.

With many pharmaceutical drugs set to lose their patents during the forecast period, the competition in the generic market is expected to increase, notes a new study from ReportsnReports. Patent expiry of a branded drug results in the introduction of inexpensive generic drugs in the market. Branded drugs with sales of up to $135 billion expired by the end of 2015, offering pharmaceutical companies opportunities to capitalize on this market.

The analysts forecast global generic drugs market to expand at a compound annual growth rate (CAGR) of 10.53% during the period 2016-2020. One trend which is influencing generic drugs market growth is the outsourcing of drug development. Vendors are increasingly using outsourcing as a business strategy as they have been experiencing a decline in venture capital investment.