Generic drug is widely known as low-cost equivalents of branded drugs whose patents have expired and does not associate high research and development cost. Due to rapid increase in aging population, loss of patent protection (also known as patent cliff) and increased health plan investments by many governments, generic drug market is expected to grow at a very fast pace. Generic drugs essentially have similar formulation with same active ingredient as its branded counterpart. Generic drug market essentially depends upon branded drugs as they generally have a patent span of 15-20 years.
Majority of the generic drug market constitutes of therapeutic drugs, wherein central nervous system and cardiovascular drugs are two of the largest segments served. However, respiratory and oncology are expected to witness higher growth rates in the future. Developing economies are showing strong growth environment due to improvements in reformatory regulations and increased adoption of generic drugs, especially in the government health sector.
Many generic drug manufacturers are now investing more on R&D in order to form new and more complex products which will help them in tapping new market segments and will also earn higher margins, enabling them to secure their position in highly competitive market.
Biosimilars, biobetters and supergenerics are identified as the future of generic drug industry. Biosimilars are generic copies of a class of drugs called biologics. Biologic drugs are more complex than patented drugs, in terms of structure and production process, hence involves higher R&D investments and time. However, biobetters are developed as enhanced or better versions of biosimilars and supergenerics are improved versions of original patented drug that has lost patent protection. The improvement is generally termed as re-innovation framework and may include improved drug delivery, reformulation or manufacturing technology. These newer forms of generic drugs are expected to pose threat to patented drug segment especially with many patents nearing expiration in next five years.
ASDReport.com provides an extensive collection of reports on generic pharmaceutical and drug industry. The reports cover various technologies, trends and challenges in industry pertaining to generic therapeutic drugs, biogenerics, biologics and much more.