Generic Growth Slowed To 3.8 Percent In 2007
Not as much as you might expect, given double-digit increases in recent years, yes? And that’s the same paltry growth rate as the overall prescription drug market, according to The RPM Report, which cites IMS Health data that was previewed at a recent industry conference.
What does this mean? The generics biz is getting more competitive as more players fight for share in the primary-care market, which reduces prices. As a result, according to Diana Conmy, IMS Health’s corporate director of market insights, the second half of last year saw a “tremendous reduction” in the price of generics without a corresponding increase in volume levels.
This may explain more so-called ‘at risk’ launches, in which a generic maker debuts a copycat version before patent litigation has been resolved. Teva, for instance, created a stir with its recent launch of a generic version of Wyeth’s Protonix. “The generic erosion curves are much steeper,” she said.
The bottom line - growth is coming from new approvals, and brand-name drugmakers are holding onto dollar share even as generic use increases.
Hat tip to The RPM Report (subscription may be required)
