Sold off-patent, branded generics are increasingly finding applications in emerging economies, owing to their widespread use and recommendations by healthcare professionals. Moreover, branded generic drugs are an essential revenue building segment for most pharmaceutical companies.
As per a recent study by Future Market Insights on the global branded generics market, the lucrative opportunities available in developing countries such as Russia, Brazil, China, and India are anticipated to significantly drive up the demand of these products in the near future. A crucial factor that is boosting the worldwide branded generics market is the rising out-of-pocket health care spending by patients in countries across the globe. Moreover, the expiries of patents for most best-selling drugs is also contributing positively towards the growth of businesses involved in branded generics.
Increased Adoption of Branded Generics by Pharmaceuticals Companies to Boost Future Sales
Major pharmacy chains across Europe are increasingly adopting new drug variants, which is expected to significantly boost sales. The rising pervasiveness of branded generics greatly relies on the development of such medicines by pharmaceutical companies, especially in developed countries such as the U.K., Poland, and Germany.
In addition, businesses are displaying a rising focus on improving supply chains to gain better competitive benefits on the basis of enhanced profit margin, and faster access to the to the correct process of the supply chain. Furthermore, complex cytotoxic generic drugs are witnessing high production rates to makes the company’s product essential for consumers. With higher emphasis on the development of injectable formulations manufacturers are expected to gain in the terms of revenue.
For example, a recent study by Navigant of more than 2000 hospitals in the US, estimated a reduction in supply chain expense by nearly 18%, accounting for nearly $10 million for every hospital each year, through such measures.
Making use of captive business models and sales work force, significantly lessens the rate of attrition and boosts productivity, and the time taken to push the product in to the market noticeably, increasing the efficacy of company operations. Moreover, some manufacturers are making use of outsourcing processes, while risking the loss of technical knowledge.
Austerity Measures by Governments Restrain Use of Generics
Governments and insurance companies particularly in developing nations are encouraging the replacement of branded generics with cheaper unbranded generic variants to reduce regional healthcare costs. The increasing costs of public healthcare programs and private insurance face economic pressure owing to the costs arising from reimbursements for drug purchases.
Furthermore, manufacturers have initiated restrictions on distribution of non-REMS products, as a result of which, significant health care savings are missed. In addition, a number of developing economies such as South Africa, Turkey, and India are working to lower the ideal benchmark prices in comparison to that of developed countries cluster to drive down the prices.
As per a recent report by Amnesty International, such austerity measures result in large scale purchases of bigger amounts of cost-effective generic medicines to gain greater control over the expenditure of healthcare expenditure, actually result in deterioration of healthcare services through restructuring and co-payments.
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