US generic drug market booming, as government seeks to minimize heath care spending

On the back of rapidly growing consumer spending on branded products, the US healthcare spending is projected to reach nearly $4,600 billion by 2019 at an average annual rate of 6.3%, says a new report added to the offering of Research and Markets. The government is now emphasizing the need to minimize health care spending by using generics drugs and promoting other low cost health care. This has created huge opportunities in the country’s generics industry.

The US generics market is anticipated to grow at a CAGR of around 10% during 2010-2013, says the report, titled Booming US Generic Drug Market. Currently, the market growth is largely fuelled by the emergence of new products as patents of branded drugs are getting expired, and the trend is likely to continue over the next three to four years. Anticipating the future growth, Big Pharma players are making deals with some generics manufactures from the Asian countries, such as India, to access their products and market them in the USA. This trend will emerge more strongly during our forecast period, providing opportunities for the local players to widen their product portfolios.

Although several challenges such as price erosion and litigations from branded manufacturers may hamper the growth, the overall growth prospects of the market remain good. In this regard, the report provides rational analysis of various factors which will drive the generics market in the USA over the forecast period.