Small generic firms struggle in France

The French generic drug market is becoming even harder for small firms to enter, despite a large number of patent expiries over recent years. According to a report in the business daily newspaper, Les Echos, Merck Generiques (recently bought by the USA's Mylan; Marketletters passim) accounts for 28% of the market. Didier Barret, the firm's president, told the newspaper that "we succeeded in launching 100 new products, which allowed us to achieve an excellent year" in 2007.

With the exception of the drug major Sanofi-Aventis' generic drug unit Winthrop and the Australia-based Arrow, the 11 remaining copycat drugmakers in France all stagnated or experienced falls in their market share.

Maurice Chagnaud, director of the French subsidiary of the world generics leader, Israel's Teva, said: "under 15% of market share, you're not a player who matters." Pharmacies tend to restrict themselves getting their supplies, as far as possible, from the two largest generic firms, Merck Generiques and France-based Biogaran. Between them, they have over 60% of the market, making a breakthrough more difficult for newcomers. According to Les Echos, only the top four post-patent medicines manufacturers are profitable.