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2019 Generics Industry Trends Report

For industry veterans, the 2019 generics industry trends reflect many of the dynamics, challenges, and opportunities that have faced the industry for years. Increased visibility into issues such as drug costs has only heightened the critical importance for generics manufacturers to demonstrate the unique value they bring to the healthcare system. As patients, legislators, and regulators continue to seek new areas for cost-savings, the generics industry is well-positioned to meet those demands – even more so with the advent of new technologies that could reduce operational costs and improve efficiencies. Addressing the generics industry trends in 2019 will require new models for strategizing, operating, and leveraging technology.

#1 – Drug Pricing Pressures

Drug manufacturers are bearing the brunt of the focus as rising costs increase pressures across the pharmaceutical supply chain. NAFTA’s renegotiated proposal will add an additional ten years of protection for branded medicines while limiting the amount of global exports from US-based generic manufacturers. In 2017, 93% of generic prescriptions were filled at $20 or less with an average co-pay of $6.06. By contrast, co-pays for branded prescriptions averaged $40.30. Unavoidable price increases for generics should be handled with care as consumers, legislators, and regulators continue to be hyper-focused on costs.

#2 – Growth in Biosimilars

The number of biosimilars available on the market has exploded in recent years. 40 biosimilars across eight therapeutic areas have been approved in Europe, while 11 biosimilars have been approved in the US with over 60 more in development. This lush pipeline has led to an expected market size of $26 billion by next year and $62 billion by 2025. Promises of growth alongside a clear and expedited approval process have combined to make the field ultra-competitive. More generics manufacturers will look to claim their piece of the market by specializing in multiple therapeutic areas and by targeting patent expirations of branded equivalents.

Download the 2019 Generics Industry Trends Report Here

Tags: Life Sciences Trends