The global generic drug marketing is booming according to reports. Let’s look at the actual numbers regarding generic drug usage now and predicted for the future. We’ll also discuss the trends driving growth of the global generic drug market for the foreseeable future.
The Numbers
In the United States alone, generic drugs accounted for 80% of prescriptions. Zion Market Research issued a report in 2015 that expects the global generic drug market to hit 360 billion dollars U.S. by 2021. That’s an annual growth rate of nearly 11%. Cardiovascular drugs account for about a fifth of all generic drugs sold. Central nervous system drugs are expected to see significant growth, especially if we get generic drugs to prevent or stall debilitating conditions like Parkinson’s disease and Alzheimer’s.
Price Pressures
When many people need maintenance medication, regardless of the condition, prices may rise if suppliers can’t meet the demand. The solution is lower cost alternatives like generic drugs that can cost up to 85% less than the brand name drug.
Demand for generic drugs is partially driven by government health programs intentionally requiring generic drugs be bought unless there is no generic alternative, simply to save money that can be used to deliver care for others.
Nations like India, China and the Asian Pacific are starting to invest in medication regimens to treat a variety of conditions, and they are also using generic drugs to cut costs.
Technology
Generic drugs have the same formula and chemical structure as the brand name; the main difference is related to royalties and manufacturing costs, such as when a generic drug is made overseas for local consumption instead of a more expensive U.S. factory.
Biosimilar drugs are similar but not exact copies of biological agents. Biosimilars have the potential to dramatically lower the cost of some of the most expensive drugs, though there is still research to be done to verify they work as well as the original.
According to an article that was published in the Beacon Transcript, Amjevita, a cheaper alternative to Humira, promises to rival the second best-selling drug in the world. Amjevita is a biosimilar drug to Humira, allowing it to perform the same functions.
More Investment in Preventative Health
Many more public health systems are recognizing – and paying – for drugs to manage long term conditions to help patients remain as healthy as possible for as long as possible. So, too, are health insurance companies and patients themselves.
This has led to a surge in demand for lifestyle maintenance drugs that reduce risks of heart conditions, reduce the risk of cancer returning or minimize the ill effects from other drugs that cause many to not stick with their medication regimen. A greater recognition of the impact of under-controlled health conditions like diabetes and blood pressure results in governments, health care providers and patients seeking drugs that stave off heart disease and kidney failure from diabetes and high blood pressure.
Generic drugs account for a majority of prescriptions in the U.S. and the increasing demand is driven by many factors. Technology is also allowing very similar though not exact duplicate drugs, biosimilars, to make generic versions of advanced drugs.
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