UK GENERICS MARKET IS EU'S SECOND LARGEST

Recent studies confirm that the UK is the second-largest generics market in the European Union (EU) after Germany, in both value terms and by generic penetration. In 2004, approximately 80% of prescriptions issued were for generics, representing 21% of total drug sales value.

The generics market in the UK is forecast to reach US$7.6bn in 2009, driven mainly by greater incentives for prescribers. For example, family doctors are required to use software instructing them of available generic alternatives.

Generic prices in the UK are also among the lowest in Europe. While there are profit controls for prescription drugs, the government has until recently allowed freer pricing for so-called "branded generics." In 2000, however, the government imposed a maximum selling price for generic drugs.

However, there has been controversy in recent months, with a number of generics firms facing allegations over an alleged GBP100mn (US$182.22mn) price-fixing fraud involving the UK's healthcare provider, the National Health Service.

Meanwhile, the long-term strategy for the Ministry of Health involves reforming the Maximum Price System for generics, which it hopes will generate GBP300mn (US$523.64mn) in savings per year. Nevertheless, industry sources expect rising consumption to offset the negative impact of price cuts.