Generic drugs: Key market research findings
- Patent-expiry during the forecast period to drive market growth
- Increase in the number of M&As and strategic alliances
- Key vendors—Teva Pharmaceuticals, Sandoz, Allergan, Mylan, Sun Pharmaceuticals, and STADA Arzneimittel
Technavio’s market research analysts predict the global generic drugs market to grow at a CAGR of almost 11% between 2016 and 2020. The patent expiry of many top-selling drugs is the primary driving force behind growth in generic drugs market across the world. Inexpensive drugs are likely to be in introduced in the market as the patents expire, thereby aggravating the competition in the market space. In 2015, the Americas dominated the global generic drugs market by accounting for around 41% of the overall market share, with the majority of the revenue being contributed by the US. A high number of industry participants, an increase in the number of mergers and acquisitions (M&As) and a high level of generic penetration are some of the factors that will propel growth in the generic drugs market in the Americas during the forecast period.
The new market research report from Technavio presents a breakdown and analysis of the generic drugs segments by category.
“An increase in the number of M&As is an ongoing trend in the market. The growth in revenue, market share, and competitive advantage made possible through M&As is the driving force behind this trend. For instance, Actavis acquired Watson Pharmaceuticals, which made it one of the largest generic pharmaceutical companies worldwide. Besides, vendors are also focusing on forming strategic alliances and partnerships owing to improved scope for product development,” says Barath Palada, Lead Analyst, Healthcare & Lifesciences, Technavio Research.
The biosimilar segment is currently the dominant shareholder in the global generic drugs market. This segment is likely to exhibit rapid growth during the forecast period owing to constructive outcomes of ongoing clinical trials and the rising demand for biosimilars in various therapeutic applications. The application of innovative technologies such as recombinant DNA technology, genetic engineering, and combinatorial chemistry is likely to fuel the introduction of novel drugs in the biochemical market, subsequently propelling growth in the global biosimilar market.
The key vendors in the global generic drugs market include Teva Pharmaceuticals, Sandoz, Allergan, Mylan, Sun Pharmaceuticals, and STADA Arzneimittel. The global generic drugs market is highly fragmented owing to the presence of large, well-established vendors in the market. The market is characterized by the presence of a vast number of local pharmaceutical companies and is densely distributed with suppliers. The competitive environment is expected to intensify with the increase in product extensions, technological innovations, and an increase in the number of mergers and acquisitions.
A more detailed analysis is available in the Technavio report, Global Generic Drugs Market 2016-2020.
We can customize reports by other regions and specific segments upon request.
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