Spanish generic drug market grows more slowly and small companies start suffering

The Spanish generic drugs industry is going through a complex stage. The latest example is the decision of Grupo Uriach to close down its generic division (Pharmagenus), says Francisco Rosa, a journalist with Spanish newspaper El Global writing for The Pharma Letter.

Far from being an isolated case, it is a response to the weaknesses of a sector that has started a restructuring process and, according to estimates by IMS Health Spain, could see some smaller companies disappear in the short and medium term (there are over 50 generic manufacturers making less than 100,000 euros [$132,650] in Spain).

In this sense, and despite of positive messages that have been sent out in recent times, the generic industry has begun to feel the effects of the crisis. So much so, that the growth of this market has fallen from a rate of 40% in 2011, to 20% in 2012. And following this trend, the annual growth figure stands now at close to 5% (the total market is worth over 1.5 billion euros), "although negative rates have been recorded in the monthly variations," says Concha Almarza, director of operations at IMS Health Spain.