Generic drugs are considered as bioequivalent of branded drugs as they are similar in terms of quality, strength, dosage and intended use. They require low capital investment as they only incur the manufacturing cost without the expenditure on drug discovery, drug development, advertising, distribution of free samples, etc. This results in an overall reduction of the generic drug manufacturing prices. On account of this, generic drugs form an integral part of the public healthcare schemes, in both the developed as well as developing countries. A new research report by IMARC Group, titled “Generic Drugs Market: Global Industry Trends, Manufacturing Process, Share, Size, Growth, Opportunity and Forecast 2018-2023”, estimates that the global generic drugs market was worth around US$ 315 Billion in 2017. The report further expects the market to reach US$ 474 Billion by 2023, at a projected CAGR of 6.8% over the forecast period.
Global Generic Drugs Market Drivers/Constraints:
- As compared to the branded drugs, generic drugs are regarded cost-effective as they are 40-60% cheaper. This acts as one of the vital factors which is augmenting the demand for generic drugs across the globe.
- Generic drugs are completely safe and reliable as they are inspected, approved and regulated by the FDA or other assigned authorities. This coupled with growing awareness about generic drugs has facilitated the growth of the market.
- Governments of several nations are encouraging the use of generic drugs so as to reduce the expenditure incurred on the healthcare sector. In line with this, various campaigns are being undertaken with the objective of substituting the branded drugs with generic drugs.
- A rise in the number of chronic diseases like diabetes, cardiovascular diseases, Parkinson’s disease, Alzheimer’s disease, etc. is further creating opportunities for the generic drug manufacturers, particularly in countries with an increasing geriatric population.
- There are some factors which are hampering the growth of the generic drugs market. For instance, these drugs are perceived inferior by few consumers as they contain different inactive ingredients.
On a geographical front, the market has been segmented as United States, China, Brazil, Germany, France, India, United Kingdom, Japan, Canada, Italy and Others. Presently, the United States exhibits a clear dominance in the market on account of rising lifestyle diseases in the region.
The market is fragmented in nature owing to the presence of numerous small and large manufacturers who are competing in terms of prices. There is a high competition in the market which makes it tough for small players to survive. Some of the leading players operating in the market are:
- Teva Pharmaceuticals
- Novartis – Sandoz
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