Generic companies thrive when a large number of drugs lose patents. This largely holds true in the US generics market. After all, it is the biggest pharma market in the world. At the same time, because of the big opportunity there, many generic companies have made a beeline for the US. And the result -competition in this space has intensified. And prices have crashed. The only way to survive in this market then is to keep up the flow of product launches. And also identify products that have limited competition. The years 2006 and 2007 were particularly good for the global generics industry. This is when a large number of blockbuster drugs went off patent. After a lull, another generics opportunity now beckons especially for Indian pharma companies.
Between the years 2011 and 2013, a large number of drugs are expected to lose patents. These drugs represent US$ 80 bn in innovator sales. Thus, even after factoring in for competition and price erosion, the opportunity available is still better than what would have been otherwise.
Making the most of it
So how are Indian pharma companies geared to capitalise on this opportunity? The crux is 'products with limited competition'.
In this regard, Dr. Reddy's, Ranbaxy, Sun Pharma, Lupin, and Glenmark have some opportunities lined up. The biggest, however, seems to lie with Dr. Reddy's and Ranbaxy.
It is becoming increasingly clear that Indian pharma companies will have to do something extra special. This is more so if they want to sustain their revenues and profits in the highly competitive US generics market. No longer is it a simple case of competing in the market only on the basis of price.
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K P BHAT
Jul 15, 2010How about 1,,. PIRAMAL HEALTHCARE /2. ZYDUS WELLNESS
3.TORENT PHARM?