Generic drugs are identical copies of branded drugs which are manufactured for obtaining the same pharmacological effects. They contain similar active ingredients, dosage, intended use, risks, safety, side effects and route of administration. Additionally, the production of generic drugs is monitored and approved by the Food and Drug Administration (FDA) of the United States. This ensures that the medicines are safe and effective for the consumers, thereby playing a vital role in the public healthcare schemes. A new research report by IMARC Group, titled “US Generic Drug Market: Industry Trends, Share, Size, Growth, Opportunity and Forecast 2018-2023” estimates that the US generic drug market reached a value of more than US$ 93 Billion in 2017. The report further anticipates the market to cross US$ 173 Billion by 2023, growing at a CAGR of around 13% over the forecast period.
U.S. Generic Drug Market Drivers/Constraints:
- In comparison to the branded drugs, generic drugs are quite inexpensive and economical in nature. This remains one of the major forces that has been proactive in maintaining the market growth.
- Moreover, generic drugs are manufactured with comparatively low investment of the capital as the research and development is already done beforehand, thereby reducing the overall production cost of the generic drugs.
- Another factor that is facilitating the growth of the US generic drug market is the US government encouraging the usage of generic drugs in order to reduce the healthcare expenditure on account of aging population and a rise in the incidences of chronic diseases in the region.
- However, generic drugs are categorised as inferior by consumers and doctors in general as they might have slightly different inactive ingredients. This acts as a key factor impeding the growth of the market.
On the basis of segment, the US generic drug market is segregated as branded and unbranded generics. Currently, unbranded generics exhibit a clear dominance in the market accounting for the largest share.
The market is highly fragmented with the presence of several small as well as large manufacturers who compete in terms of prices and quality. There is a rigid competition in the market which makes it tough for small players to enter the market. Some of the leading players operating in the market are:
- Sun Pharma
- Par Pharmaceuticals
- Endo Pharmaceuticals
- Lupin Pharmaceuticals
- Dr Reddy’s
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