- The global generic drug market is expected to grow at a CAGR of 6.8% from to 2018 to 2023.
- Global generic drug market expected to reach a volume of $474 billion by 2023.
- The most important factor driving the market for generic drugs is their lower cost.
According to the latest report by IMARC Group titled, “Generic Drugs Market Report: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2018-2023”, the market reached a value of $315 billion in 2017. Looking forward, the market is expected to reach a value of $474 billion by 2023, exhibiting a CAGR of around 6.8% during 2018-2023.
A generic drug has the same active ingredients and rate of absorption as the original drug. It is equivalent to its branded counterpart in dosage, form, quality, and strength. At present, the most important factor driving the market for generic drugs is their lower cost. Generic drugs require less approval time than their branded counterparts. Moreover, the manufacturers do not incur high initial drug development costs, and hence, can price these drugs lower than the original drugs.
The increasing number of patent expiration of branded drugs and rising government initiatives are augmenting the demand for generic drugs. In addition to this, the increase in the instances of chronic diseases such as diabetes, cardiovascular disease, and Alzheimer’s disease is further driving the growth of generic drugs market worldwide. Moreover, business process automation technologies such as RPA are increasingly being adopted by pharmaceutical companies to handle high volume tasks in R&D and manufacturing. These technologies help in completing various processes at a quicker pace and reducing costs.
The report has also examined the competitive landscape of global generic drugs market. Some of the major players in the market are Teva Pharmaceuticals, Novartis – Sandoz, Mylan, Fresenius, Pfizer, etc.