Industry adjustments as patents expire

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Industry adjustments as patents expire

Genéricos/General | Posted 14/10/2011 0 Post your comment

Analysts are making some positive predictions as they consider the implications of the continued patent expiry of many blockbuster originator drugs.

Within the US pharma industry, more money can be made by medicines distributors from a range of generics alternatives than from single big brands. When the big companies are in control, profit margins for middlemen are razor thin. When there is a competitive situation between companies, there is more room for manoeuvre. The European distribution industry may be looking forward to some relief as well, as some large companies have cut out the middleman completely and are supplying their customers directly.

The pharmaceutical bulk drug industry in India is also poised to benefit from the impending patent expiries leading to increased generic penetration. This is a significant opportunity to supply active pharmaceutical ingredients to manufacturers of such generic drugs coupled with increased outsourcing of bulk drugs by multinational pharmaceutical companies. The growth is underpinned by heightened regulatory compliance amongst Indian companies with numerous FDA-approved manufacturing facilities, a large talent pool and low manufacturing costs. The generics firms are also no doubt considering a variety of US/European sources.

The constant repositioning in the industry is giving new opportunities to many, not forgetting the patients.

Source: DNAIndia, Expert Briefings, Forbes