Generic drugs are identical or bioequivalent to a brand name drug in dosage form, safety, strength, route of administration, quality and efficacy. They offer an affordable alternative to costlier branded drugs for chronic ailments like diabetes, hypertension, and cardiovascular diseases.
The global Generic Drugs Market is estimated to be valued at US$ 439.37 billion in 2023 and is expected to exhibit a CAGR of 5.4% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends: Increased accessibility of generic drugs due to their lower prices has been a key driver of the generic drugs market growth. Generic drugs being offered at 60-70% lower prices than their branded counterparts have improved the affordability and accessibility of medicines for common ailments. This has provided treatment options to a large population globally who otherwise may not have been able to afford branded drugs due to their high costs.
Strength: Generic drugs offer the same clinical benefits as their branded counterparts but at a more affordable cost for patients. They provide significant cost savings for healthcare systems worldwide.
Weakness: Developing generic versions requires extensive testing to prove bioequivalence with the original drug, which is a lengthy and costly process. The patents of large pharmaceutical companies also pose market entry barriers.
Opportunity: The expiry of patents for blockbuster drugs provides opportunities for generics firms to launch affordable alternatives. Population aging trends will further drive the demand for low-cost medicines globally.
Threats: Stricter regulations can delay the approval process for generic versions. Branded drug companies also fiercely defend their patents through litigation which poses competitive challenges.
The global generic drugs market is expected to witness high growthover the forecast period supported by growing prevalence of chronic diseases and rising healthcare costs worldwide. The global Generic Drugs Market is estimated to be valued at US$ 439.37 billion in 2023 and is expected to exhibit a CAGR of 5.4% over the forecast period 2023-2030.
Regional analysis: North America currently dominates the market owing to supportive regulations and insurance coverage for generic drugs in countries like the US. However, the Asia Pacific region is expected to offer lucrative opportunities driven by increasing access to affordable treatment, rising income levels and growing elder population in many developing Asian countries.
Key players: 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 firms are focusing on expanding their generic drug portfolios through partnerships and acquisitions to better serve the growing patient demographic with low-cost treatment alternatives.
- Source: Coherent Market Insights, Public sources, Desk research
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