Generic Drugs Market set for Robust Growth due to Increased Uptake of Cost-Effective Medicines
The global generic drugs market provides cost-effective alternatives to branded pharmaceutical products. Generic drugs contain the same active pharmaceutical ingredients and are equivalent in strength, safety, efficacy, and intended use. They offer significant cost savings for patients, healthcare providers, and government and private health insurers. The growing need to reduce healthcare costs is a key driver for the increased adoption of generic drugs around the world.
The Global generic drugs market is estimated to be valued at US$ 439.37 bn in 2024 and is expected to exhibit a CAGR of 5.4% over the forecast period 2023 to 2030. High prescription volumes for chronic diseases and the patent expiry of blockbuster drugs create multiple opportunities for generic drugs manufacturers. The availability of generic substitutes for drugs treating cardiovascular, diabetic, analgesic, and respiratory conditions is expected to boost market revenues.
Key Takeaways
Key players operating in the generic drugs market are Mylan N.V., Novartis International AG, Pfizer, Inc., Allergan Plc, Sun Pharmaceuticals, Fresenius Kabi, Sanofi, Endo International, Lupin Ltd., Abbott Healthcare, AstraZeneca Plc, and Novo Nordisk. These companies are focusing on expanding their product portfolios and pipeline molecules through aggressive M&A strategies.
The expiry of patents for major blockbuster drugs provides lucrative opportunities for generic drugs manufacturers. The loss of exclusivity for drugs like Avastin, Humira, Imbruvica, Revlimid, and Spinraza between 2023-2030 will significantly increase the demand for affordable biosimilars and generic versions.
North America and Europe represent the most attractive markets for generic drug makers due to their advanced healthcare systems and regulations supporting the use of generics. However, emerging Asian countries like India, China, and South Korea are becoming global innovation hubs and offer substantial untapped potential for future revenue growth.
Market Drivers:
1. Increasing incidence of chronic diseases drives prescription volumes of generic drugs. Diseases like diabetes, cancer, cardiovascular disorders are highly prevalent worldwide. This expands theAddress sizeable patient populations requiring long-term treatment.
Market Restraints:
1. Rising R&D expenditures and regulatory hurdles increase costs of generic drug development. Obtaining approvals and bringing generics to market in a timely manner has become more challenging. Lengthy clinical trials and documentation requirements negatively impact profits especially for first-to-file generic applicants.
Segment Analysis
The generic drugs market can be segmented into branded to generics switching, new prescriptions, over-the-counter (OTC) to prescription switching, and unbranded to branded switching. Branded to generics switching is dominating the market as many blockbuster drugs are expected to lose patent protections in the coming years which will lead to increase in generics market share. Patent expiries of major drugs like Lipitor, Seroquel, Copaxone and others worth billions of dollars in annual sales will shift to affordable generic drugs.
Global Analysis
Regionally, North America leads the generic drugs market with the US being the dominant market. This can be attributed to high adoption of generics since the region has seen heavy utilization of generics. Generic drugs account for nearly 90% of all prescriptions written in the US. Asia Pacific is expected to witness the fastest growth over the forecast period due to factors such as improving healthcare infrastructure, rise in healthcare spending, and increase in the incidence of chronic diseases. There is also a shift towards generics in countries like India, China and other emerging nations which are helping drive the market in the Asia Pacific region.
Priya Pandey is a dynamic and passionate editor with over three years of expertise in content editing and proofreading. Holding a bachelor's degree in biotechnology, Priya has a knack for making the content engaging. Her diverse portfolio includes editing documents across different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. Priya's meticulous attention to detail and commitment to excellence make her an invaluable asset in the world of content creation and refinement.
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