Analysis Forecasts Boom in European Generic Market

An aging population and increasing pressure on governments to reduce the cost of healthcare are creating a growing market for generic drugs in Europe, according to a recent Frost & Sullivan report.

The analysis, “Blockbusters Going Off-Patent: Opportunities for Generics Manufacturers in Europe,” finds that the European generic market earned $17.18 billion in revenue last year and estimates that number to reach $35.90 billion in 2013.

“Patent expiries, progeneric reforms in certain countries and need for cheap, effective medicines are the key factors driving growth in the European generics market,” Frost & Sullivan Research Analyst Sumanth Kambhammettu said. “Various studies have indicated the cost savings obtained from generics, and several governments in Europe are actively promoting generics.”

A number of blockbusters are expected to lose patent exclusivity within the next five to seven years, posing additional growth opportunities for generics in Europe, according to the analysis.

Also, some countries offer incentives to pharmacists and physicians for prescribing generics, which is likely to spark further growth. However, generic drugmakers do have such hurdles as reference pricing, parallel trading and brand drug evergreening to face, the report adds.