Branded generics forecast to double revenues, with US and Europe left behind

While the US Food and Drug Administration (FDA) evaluates and greenlights​ the marketing approval of several generic drug products periodically, building on its recently-marked record of approvals in 2019​, a recent market report sees North America remaining low on the global branded generics revenues scale.

Branded generic drugs are new formulations of off-patent drugs sold either by the manufacturer of the patented drug or by generic companies that build up brand equity for their generic versions of medications. An example of a branded generic is Teva’s version of Sabril (vigabatrin), approved by the FDA last year​.

Findings of a recent global analysis​ of the branded generics market are quite harmonized with the report of the International Generics Pharmaceutical Alliance​, published a few months ago, which showed broad divergence and increased market value in the emerging markets.

According to the latest report of Future Market Insights (FMI), China, India, and Asia Pacific (excluding Japan) will lead the global branded generics market, which is poised for a ‘solid’ compound annual growth rate (CAGR) through 2029.

Specifically, the global branded generics market, which was valued at $231bn (€211.82bn) in 2018, will exhibit a CAGR of 8% during 2019-2029 and will nearly double its revenues.

FMI suggests that developed regional markets are driven by rising generic drugs adoption by large-scale pharmacy chains, as well as that they receive a ‘strong impetus’ from conducive regulatory environments.

However, unlike Asian markets, North America and Western Europe currently hold a collective share of approximately 30%, which “would most likely witness a dip”​ towards the end of projection period, according to FMI.

Leading indications and drug formulations​

In terms of indications, the report showed that drugs for cardiovascular diseases and diabetes management account for more than 20% of the total sales of branded generics in the global market.

While these are projected to remain the top therapeutic application areas throughout the period of projection, the demand for branded generic drugs in gastrointestinal disease treatment is also increasing ‘at a noteworthy rate’, states FMI.

Moreover, the analysis suggests that oncology is reflecting ‘lucrative’ growth potential within the branded generics market.

Drugs in oral formulation account for the largest share of the market, contributing nearly half of the global revenue share, while parenteral, topical, and other formulations altogether contribute approximately 42% of market share.

In terms of drug class, FMI projects that over the next 10 years, the market will be dominated by anti-hypertensive medication, since branded generics are expected to gain traction in cardiovascular diseases.