Unprecedented growth forecast for generics

The generic drugs industry is facing a period of unprecedented growthto 2005, according to a new report from Datamonitor, entitled: the Generics Industry in 2005; a New Threat to Pharma. The loss of patent protection on $100 billion of drug revenues (based on 1999 turnover) by 2005 will fund the expansion of generics companies into fully-fledged pharmaceutical concerns. And, says Datamonitor, this will present a significant competitive threat to research-based companies, particularly those lacking innovative portfolios.

The time when all generics companies focused exclusively on the development of commodity generics, ie easy to manufacture, oral versions of drug with few barriers to market entry, is past. Increasing competition and low margins have shaped generics industry survivors into more efficient market players, with R&D efforts focused on adding value to portfolios through the development of high-barrier-to-entry products, such as Biovail's generic Procardia XL (nifedipine) and branded drugs like Teva's Copaxone (glatiramer acetate). Generics companies are penetrating further into the R&D-based pharmaceutical market, the report notes, creating new competition for existing players.

Some using sophisticated drug delivery to add value to generics