Generics Growth Strategies: Cost containment and M&A shape the global generics industry
Posted May 03 2010 2:41am
The last three years has seen several major shifts in generics company strategies. From 2006 to 2008 a period of high M&A activity was seen as many companies sought to expand geographically and create the scale required to compete with large pharmaceutical companies. Since the global financial crisis the level of deals has declined due to the implications of restricted debt markets and the need to reduce company debt.
The global financial crisis has also affected government debt and subsequently healthcare cost containment has become a prominent issue. Many nations and in particular the US is seeking to reduce healthcare costs through promotion of generics and creating better approval pathways for biogenerics.
Key findings The unbranded pharmaceutical industry grew from $41,476m in 2007 to $44,364m in 2008, a 7.0% annual growth. Teva took over the position of global generics leader showing impressive growth of 24.0% and sales of $7,015m for 2008. The company gained considerable market share particularly in the US. Latin America was the fastest growing region with a 2007-08 annual growth rate of 28.7% and a 2004-08 CAGR of 36.8%. This was predominantly due to the largest Latin American market, Brazil, which grew with a 2004-08 CAGR of 41.1%. Key features of this report Evaluation of the unbranded generics market from 2004-08 in terms of sales. Country and region specific analysis of the generics market in terms of sales. Therapy area analysis including company and product level breakdown by sales. Identify trends in M&A strategies including case studies of major M&A deals from 2005 onwards.