Prospects for global generic drugs market viewed by F&S

While the global generic pharmaceuticals market is expected to peak in 2012 as a result of the patent expiry of several leading brands, regulations favoring generics and wider health insurance coverage by governments and private bodies are expected to boost generic consumption, according to a new report for Frost & Sullivan.

The global generic pharmaceuticals market was estimated to be worth $123.85 billion in 2010, growing at a compound annual growth rate of 9.3%. The top eight global markets, namely the USA, Germany, the UK, France, Japan, Canada, Italy and Spain, account for 80% of the total generic drug sales worldwide. Patent expiry of blockbuster drugs worth $150 billion presents lucrative opportunities for generic manufacturers, says F&S.

In Europe, developed generic markets such as Germany and the UK have very high rates of generic penetration, presenting very minimal growth rates. While emerging markets such as France, Italy and Spain have seen the extent of generics penetration increase steadily, pricing policies, incentive schemes and regulatory framework still pose a challenge to the market participants with regard to market access and profit margins.