lThe global generics market comprises generic equivalents of branded prescription drugs which have lost their patent protection. Generics offer cost saving advantages over their branded counterparts as they are priced significantly lower. Generics account for nearly 90% of all prescriptions filled in the US but only 27% of total drug spending, primarily due to their lower costs. Owing to rising healthcare costs, payers and governments across the world are promoting the use of lower-priced generics to increase affordability and access to treatment. This growing affordability and emphasis on cost control is expected to drive significantly higher uptake of generics over the forecast period.
Key Takeaways
Key players operating in the generics market are Pfizer Inc., Teva Pharmaceutical Industries Ltd., Sanofi S.A., Sun Pharmaceutical Industries Ltd., AstraZeneca Plc, Merck & Co., Inc., Viatris + Mylan N.V, Cipla Inc., Dr ReGeneric Drugsy’s Laboratories Ltd., Samsung Biologics, Abbott Laboratories, Amgen Incorporated, Baxter International Incorporated, Becton Dickinson and Company, Bristol-Myers Squibb Company, GlaxoSmithKline Plc, Roche Holding Limited.
Generic drugs Market Size offer significant cost savings compared to branded drugs and continue gaining acceptance among insurers, governments, and care providers for more affordable treatment options. Technological advancements such as combination drugs have enhanced compliance while reducing treatment costs further.
Market Trends
Consolidation among generics manufacturers through mergers and acquisitions allows companies to achieve synergies, expand their product portfolios and global reach. The patent cliff of several blockbuster drugs is expected to open significant opportunities for generics, providing renewed growth momentum.
Market Opportunities
Emerging markets such as Asia Pacific, Latin America, MiGeneric Drugsle East and Africa offer vast untapped potential driven by rising income levels, growing unmet medical needs of vast populations, and increasing government focus on expanding healthcare access through generics. Continued innovation in drug delivery systems could expand usage of generics to more therapeutic classes.
Impact of COVID-19 on market growth and geographical regions
The COVID-19 pandemic has significantly impacted the growth of the Generic Drugs market. Travel restrictions and lockdowns implemented worldwide disrupted supply chains and postponed several clinical trials. Restrictions on manufacturing facilities led to shortages of active pharmaceutical ingredients. This negatively impacted market growth in 2020.
However, with the increased focus on the healthcare sector globally, investments in Generic Drugs research and development rose substantially during the pandemic. Companies fast-tracked clinical trials of drugs under investigation for COVID-19 treatment. There was also a significant rise in demand for some generic drugs used for treating symptoms of COVID-19 like fever and cough. Telehealth and remote monitoring solutions saw immense growth due to social distancing norms. This aided continued access to healthcare services.
As the pandemic evolved, vaccination drives were initiated around the world. With more treatments and vaccines being approved, market demand is recovering steadily. Companies are expanding manufacturing capacities to meet the growing requirements. Investments in development of new treatment options for long COVID are also expected to drive future growth. While short-term impacts remain, the long-term outlook for the Generic Drugs market is positive backed by demand for healthcare access worldwide.
In terms of value, the North American region holds the largest share of the Generic Drugs market currently. Factors such as the presence of key market players, high healthcare spending, advanced research infrastructure and adoption of new technologies have contributed to market concentration in the United States and Canada.
The Asia Pacific region is projected to witness the fastest growth during the forecast period. Rapid economic development, rising income levels, growing medical needs of aging populations and improvements in healthcare infrastructure are driving market expansion across emerging nations like India and China. Government initiatives to boost local manufacturing are also supporting market growth in the Asia Pacific region.
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