The global generic drug market will continue to expand. Currently, penetration in Europe and other developed markets varies, but based on market trends, generic penetration in developed markets could be around 80-90% in a decade or so.
3 Ways to Succeed in the Generic Drug Market
1. Gettting Bigger & Better
To combat buy-side consolidation, manufacturers may take the tempting route of acquiring smaller competitors or merging with larger companies. Over the next few years, several large pharmaceutical companies may spin off their generic drug divisions, further opening up opportunities for M&A activity.
2. Elimination of middlemen and vertical growth
Both backward (distribution) and forward (drug manufacturing) integration are seen as viable strategies to give generic drug manufacturers more control. Having manufacturing capabilities for both active pharmaceutical ingredients (APIs) and finished drug products (FDFs) is common, and may become even more common in the future.
3. Concentrating on different generics
Nowadays, speed-to-market is everything, thus any procedure that shortens that time is appreciated.
Manufacturers have the additional advantage of tailoring their product to the patient behaviours of a particular market by creating differentiated medications (often with enhancements in terms of dose form, formulation, dosing regimen, or mode of administration).