Pharma Units Eye Generics Market In Europe, Us

With the introduction of products patent in 2005 the national sector of the drug industry will be deprived of the opportunity of introducing new drugs that are mostly developed in the west. Generic market may open up a new ground for them to venture into.

According to the European Generics Association (EGA), the European Union market for generics is at present worth about Ecu 4.5 billion which is equivalent to $6 billion, accounting to 15 per cent of the total pharmaceutical market by volume and 10 per cent by value.

EGA estimates are that the EU generics market will reach the level of Ecu 8 billion or nearly $12 billion by the year 2000.

 

In contrast, the US market for bulk generics is estimated to grow at the rate of $3 billion annually over the next five years.

In the EU market the Indian drug companies have already established a strong showing by being highly competitive. But it is feared that the Indian companies may sustain this trend as they may not obtain enough material like active ingredients to meet the expected upsurge in demand that is certain to surface in the next few years.

Incidentally, EU accounts for 80 per cent of the total US generic active imports. Of this, Italy accounts for 50 per cent. But with the adoption of the supplementary protection certificate (SPC) no European producer can make even small quantities of patented bulk drugs required for US formulators. As a result, US generics companies are looking elsewhere for supplies.

As the European supplies are drying up for the US the Indian companies will find it a profitable ground to hit the US generics market. The Indian companies have the advantage over many others like China as they find it convenient to conform to the FDA rules and requirements.