Market Analysis

First posted: 08/12/2011

Danish generic medicines policy has created conditions fostering a low-price, high-volume generic medicines market [1].

Market shares of generic medicines in terms of value of consumption have decreased from 39.3% in 1994 to 23% in 2009 as a result of falling prices of generic medicines. This has been accompanied by a slight decrease in the volume of consumption of generic medicines, with market shares falling from 61.3% in 1994 to 57% in 2009 [1].

CF Denmark Market Analysis Image V11L12JH

Source: 1994–2004 [1], 2005–2009 [2].

Denmark has in principle a free pricing system for generic medicines [3]. Generics need only to be priced below the originator price to qualify for reimbursement [4].

Highlights of the generics market in Denmark

  • Market share of generic medicines by prescription is 57%, but only 23% in value [2].
  • The reference pricing system and generics substitution by pharmacists reward generic medicines companies that set competitive prices for an active substance with high sales [1].
  • Physicians tend to have a favourable attitude towards generics substitution by pharmacists and face non-financial incentives to prescribe generic medicines [1].
  • Strong price competition and low prices could endanger the long-term sustainability of the generic medicines industry [1].
  • Free pricing of generic medicines [3].
  • Generics companies compete with each other on price, driving prices down.
  • Public expenditure on medicines in Denmark has been reduced by Euros 15 million a year since generics substitution was implemented [5].


1. Simoens S, De Coster S. Sustaining Generic Medicines Markets in Europe. April 2006. [monograph on the Internet]. Brussels, Belgium, European Generic medicines Association [cited 2011 December 06]. Available from:

2. Danish Medicines Agency (Lægemiddelstyrelsen, DKMA). Medicinal Product Statistics Denmark, 2005-2009 Total sales. June 2010.

3. Bongers F, Carradinha H. How to Increase Patient Access to Generic Medicines in European Healthcare Systems. European Generic medicines Association. June 2009.

4. Österreichisches Bundesinstitut für Gesundheitswesen (ÖBIG). Surveying, Assessing and Analysing the Pharmaceutical Sector in the 25 EU Member States. July 2006.

5. Grooten E. How did the new generic provisions influence generic substitution in Europe? DIA 20th Annual EuroMeeting. Barcelona, Spain. 2008.

Related content
Country Focus/Denmark Posted 12/12/2011
Licensing Guidelines and Regulations
Country Focus/Denmark Posted 07/12/2011
Policies and Legislation
Country Focus/Denmark Posted 09/12/2011
Most viewed articles
About GaBI
Home/About GaBI Posted 06/08/2009
EU guidelines for biosimilars
EMA logo 1 V13C15
Home/Guidelines Posted 08/10/2010