The Inevitable Future of Generic Pharma Drugs Companies

Abstract

Fierce competition and public pressure on pharmaceutical companies pose challenges for ethical and generic pharma companies. 7-10% annual price erosion for generic companies leads to decrease profitability With increased competition combined with pressure from payers, pushes margins lower. Competition made its mark of some global generic players and led to the rise of Indian players, however price erosion also affects these players. The ability of the generic players to increase their margins are the key elements in their survivor and thrive. The way to achieve that is by utilizing drug delivery technologies, that can introduce added-value within limited investments (as low as US$ 10-20M), through the 505(b)2 regulatory process (a similar process has been adopted by the European agency and recently by the Chinese authority). Herein I will share my views on the inevitable future of generic pharmaceutical companies.