How bright is the future for generics?

Generics are still unfamiliar to both medical institutions and patients in Japan.

In Japan 2006, share of generics is only 6% of US$ 50 billion prescription market by value and some 16.9% by volume. Recently, change in the environment is pushing us.

MHLW is advocating use of generics to reduce runaway health cost. Share of generics may become larger than before in Japan.

The focus of governments on pharmaceutical costs has favored the development of the generics market, which showed and annual growth rate worldwide of 15% between 1996 and 2001, while the original brand market grew by only 6% during the same period. In 2001, the worldwide generics market was estimated atUS$42 billion – 11% of the total prescription market. It appears that prospects for the worldwide generics market are good and that current players, as well as potential entrants, have reason to feel enthusiastic.

However, careful, country –by-country analysis of the impact of changes in the regulatory and competitive environments reveals a future of contrasts for the worldwide generics market. The results of such an in depth assessment may lead certain generics companies to revise their development strategies, and encourage potential players to reconsider whether they should enter the market or the way they intend to do it.


Source:IMS Health,MIDAS,New Market Segmentation,RX only,MAT Dec 2007
*Japan data 2006(JGA)

Below is a table detailing the REgulatory Measures and Attractiveness of selected generics markets.
Source: Smart Pharma Consulting Analyses.

About Us IR Information