Growth of generic drugs market to accelerate
LOCAL and global growth of the generic pharmaceutical market was set to rapidly accelerate this year, building on the significant momentum the sector achieved last year, a generic pharmaceutical company said yesterday.
Picture taken from www.livingstingy.blogspot.comThere is now tremendous pressure on medical aids, and the need to cut costs is higher than ever
"We anticipate that the generics industry will experience considerable growth in the coming year, after the average 11% growth we saw locally in 2011," Paul Anley, CEO of Pharma Dynamics, whose 42% annual growth makes it the fastest-growing pharmaceutical company in South Africa, said.
Anley said the expected gains in the coming year could be ascribed to the spiralling cost of healthcare and the expiry of a number of patents.
"There is now tremendous pressure on medical aids, and the need to cut costs is higher than ever. This need to contain costs will inevitably lead to a move towards generic alternatives from expensive originator drugs."
A number of products coming off patent, especially in the cardiovascular category, mean that more generic medicines will be coming onto the market, and these are likely to be an attractive option for medical aids and patients alike. Another factor favouring growth of generics was globalisation. In the past, originators have operated globally, while generic manufacturers were domestic.
"We are seeing an accelerated rate of consolidation and globalisation as companies are looking to expand to attain global reach, particularly in emerging markets. The growth of the middle classes in developing countries has a direct impact on the growth of generics," Anley said.