Growth of generics industry remains upbeat in Canada

The generic drugs industry in Canada is anticipated to expand at a compound annual growth rate (CAGR) of around 14% during 2009-2013 as a result of patent expiry of several blockbuster drugs, says RNCOS in its latest research study.

The future of the industry remains promising owing to higher margins and lower competition in Canada compared to other big markets. RNCOS says it has found that the growth in the generics industry will be mainly driven by an aging population, patent expiry of several blockbuster drugs, and the government support in the form of cost containment. Besides, high participation in industry activities by the market players, higher margins to pharmacists and effective developmental efforts by provinces will drive the optimistic performance of the industry.

The research indicates that presently the share of generic drugs in Canada is about one-fourth of the overall pharmaceutical market. Also, many foreign firms are looking forward to invest in the Canadian generics industry. Some key therapy areas such as chronic disease, hypertension and diabetes represent big opportunity for generic drug manufacturers in Canada. RNCOS says it has also evaluated various factors that will propel the growth of generics market in Canada during the forecast period (2011-2013).