Consolidation in the Generic Pharmaceutical Industry

Summary

For many years generic companies were the poor relations of the pharmaceutical industry, with modest growth rates and little or no transnational business operations. As generics companies have grown, often by acquisition, they have generally developed as international businesses.

There has been a remarkable transformation in the pharmaceutical market, with revenue growth in the generics business turning into a high growth segment. In 2006, global sales of generic pharmaceuticals were $ 77 billion.

The leading two generics companies have both generated sufficient revenues to be described as major pharmaceutical companies. However there are also key issues that impact the growth prospects of the generics companies, such as fewer new therapeutic entities reaching the market- which ultimately reduces the number of opportunities to launch new generic products. Another crucial issue for the generics market is more biological agents. The introduction of biosimilars has several legislative and regulatory constraints for generics companies.

In response to some of these challenges, many leading generic companies have pursued consolidation via mergers and acquisitions, increasing their market muscle and improving their geographical reach. This has made the generics market see a rush of takeovers.

Consolidation in the Generic Pharmaceutical Industry: An evolving landscape closely examines the significant acquisitions in the industry and forecasts which companies are shifting from single country marketing strategies through mergers and take-overs.

Key Features of the Report:

• Solid overview of the generics market
• Tells the story behind the most competitive acquisitions- and why generics companies are moving to lower cost manufacturing environments,
• Assesses the upcoming players in the generics market- Brazil, Mexico, India, China and South Korea
• Identifies low penetration markets for short term revenue growth
• Profiles 11 generics companies
• Points out when the generics market will see slow growth, and why.

Companies mentioned in the report include:

Abbott, Actavi, Allergan, Apotex, Aspen Pharmacare, AstraZeneca, Baxter, Bristol-Myers, Caraco., Chisie, Cinfa, Dr Reddy's, Egis, Gedeon Richter , GlaxoSmithKline, Glenmark, Greenstone (Pfizer), Hikma, Hospira, Krka, Kyowa, Mallinckrodt, Merck, Mylan, Nichiiko, Nicholas Piramal, Novo Nordisk, Par, Perigo, Pliva, Ranbaxy, Ratiopharm, Richter , Sandoz (Novartis), Sawai, Sanofi-Aventis, Stada, Teva , Torrent, Towa, Wockhardt, Zambon, Zentiva, Zydus Cadila.

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