Published on : Jan 13, 2016
With patent expiry looming over blockbuster drugs, the generic drugs market finds lucrative opportunity to annex the market share left vacant by the branded drug manufacturers. Generic drugs are medication having chemical composition and properties similar to that of their branded variants, however they are priced more affordably. Unlike blockbuster drugs and medications, generic drugs do not display the name of their brands on the packaging, instead they have their chemical composition mentioned on the same.
The cost-effectiveness of generic drugs, and the fact that they offer the same composition as the branded variants is giving a competitive edge to the enterprises operating in the generic drugs market. Ideally, a branded drug has a lifespan of 20 years that begins from the phase of clinical trials. Hence, its commercial lifespan gets reduced to 15 years. With looming patent expiry the manufacturers of blockbuster drugs are facing stiff competition from their generic contemporaries.
The enterprises operating in the generic drugs market have gradually gained momentum as retailers, wholesalers, supply chain participants, benefit managers, and pharmacies benefitted from the sale of generic drugs, which in turn increased their profit margins.
The woes however, do not end here for the branded drug manufacturers. With the advent of the latest technologies in the generic industry and growing awareness among consumers about generic drugs will further hamper the demand for branded drugs in the forthcoming years. Taking a clue from the prevailing trends, the blockbuster drug manufacturers have already started adopting vigorous defense mechanism to safeguard their market share and profit margin.
However, the new strategies adopted by the branded drug makers could do little to deter the generic drug makers, who followed the strategies adopted by the former closely. To combat the defensive strategies deployed by their branded counterparts, the generic drug manufacturers are partnering with local retailers, wholesalers, and pharmacies to launch their products across the emerging market. Collaborating with regional players enabled generic drugs market to flourish amidst tough competition. Driven by such factors, the global generic drugs industry is likely to exhibit exponential growth in the near future.