Branded generics require low research or development costs compared to the branded prescription products. Companies that operate in branded generic business invest majorly in marketing the product and to create brand awareness.
The global branded generics market is estimated to account for US$ 247.0 Mn in terms of value in 2019 and is expected to reach US$ 444.0 Mn by the end of 2027.
Global Branded Generics Market: Drivers
Increasing affordability and guidelines of products to boost growth of the branded generics market over the forecast period. The company with New Drug Application (NDA) must notify the FDA in order to market an authorized generic. The company with the NDA is allowed to market both the authorized generic and the brand drug simultaneously.
Global Branded Generics Market: Opportunities
Players in the market can focus on expanding their business in emerging markets. This is owing to increasing demand for generic drugs in these markets. For instance, according to India Brand Equity Foundation, the pharmaceutical sector in India supplies over 50% of global demand for various vaccines, 40% of generic demand in the U.S. and 25% of all medicine in U.K.
Global Branded Generics Market: Restraints
Misuse of Risk Evaluation and Mitigation Strategies (REMS) to delay generic market entry is also expected to hinder growth of the market. Branded drug manufacturers/drug discovery companies use REMS to withhold access to drug samples for generic manufacturers’ bioequivalence testing and development. This in turn delays entry of branded generic drugs in the market.
Oral segment in the global branded generics market was valued at US$ 134.8 Mn in 2018 and is expected to reach US$ 258.9 Mn by 2027 at a CAGR of 7.3% during the forecast period.
Oral medications is easy to administer and patient compliance with oral medication is higher than other routes of administration, mainly, due to ease of administration. Moreover, tablets, and capsules can be made more palatable using sweeteners, and colored coating. These factors are expected to support growth of the segment.
The retail pharmacies segment held dominant position in the global branded generics market in 2018, accounting for 45.4% share in terms of value, followed by hospital pharmacies and drug stores, respectively.
Patients find it easy and time saving to directly get their medication from retail pharmacies upon showing a prescription. Moreover, in economies such as Asia Pacific, and Africa, patients highly purchase their medications from retail pharmacies. These factors are expected to support growth of the segment over the forecast period.
The Asia Pacific region segment held dominant position in the global branded generics market in 2018, accounting for 32.3% share in terms of value, followed by Europe and North America, respectively.
Factors such as high patient population, increasing healthcare spending, presence of number of generic manufacturers who offer branded generics at cheaper rates are expected to support growth of the region over the forecast period.
Some states in the U.S. are focused on launching state-produced branded generics to reduce healthcare cost. For instance, in January 2020, the state government of California announced its plans to introduce its own brand of generic prescription drugs in order to reduce healthcare costs.
Major players in the market are offering discounts on their branded generics. For instance, in January 2020, Eli Lilly and Company announced its plans to offer half-price generic versions of its fast-acting Humalog Junior KwikPen insulin and Humalog Mix75/25 KwikPen, which contains a mix of fast- and intermediate-acting insulin by mid-April 2020.
Global Branded Generics Market: Competitive Landscape
Major players operating in the global branded generics market include, Mylan N.V, Novartis AG, Teva Pharmaceutical Industries Ltd., Pfizer Inc., Sun Pharmaceutical Industries Ltd., Aspen Pharmacare Holding Ltd., Abbott Laboratories, and Valeant Pharmaceuticals International, Inc.
Global Branded Generics Market: Key Developments
Major players in the market are also focused on adopting M&A strategies to expand their portfolio. For instance, in October 2019, Zentiva, a developer of branded generics and OTC products, announced the signing of a definitive agreement to acquire the Central and Eastern European Business of Alvogen, for an undisclosed amount.
In July 2019, Mylan N.V. and Pfizer Inc. announced a definitive agreement to combine Mylan with Upjohn, Pfizer’s off-patent branded and generic established medicines business, creating a new global pharmaceutical company.
“*” marked represents similar segmentation in other categories in the respective section.
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