Chill pills: Healthcare reform and patent expiration will boost industry revenue

The Generic Pharmaceutical Manufacturing industry is expanding at a steady pace. Increasing access to health insurance, rising total health expenditure and efforts to control prescription medication costs benefited generic manufacturers. Rising use of generic and biosimilar products (drugs developed from living things such as antibodies), has already resulted in trillions of dollars in savings for employers, health plans, patients and the government, according to the Association for Accessible Medicines. Increasing price scrutiny of branded prescriptions has enabled generic manufacturers to take advantage of pricing pressures and improve patient access to medicine...purchase to read more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23

Industry Threats & Opportunities

  • Industry revenue growth has benefited from expiring patents and increasing price scrutiny on branded products
  • New operators are increasingly focused on producing generic biologic drugs
  • Consumer preference for generic drugs will continue to increase
  • Industry Report - Starting a New Business Chapter

    Brand name drugs have the benefit of barriers to entry in the form of patent protection. Although generic manufacturers lack such a barrier, there are many other barriers to entry such as regulation requirements and consolidation in downstream markets. Pharmaceutical companies, both generic and brand name, have generally maintained high profit levels, indicating that high barriers are keeping new producers from entering to take advantage of relatively easy-to-earn margins. Barriers have been reduced slightly over the past five years, as strong industry growth has provided small companies with more opportunities to be acquired by larger ones...purchase to read more.

    Additional Insights for the Generic Pharmaceutical Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Generic Pharmaceutical Manufacturing Industry are

  • Control of distribution arrangements
  • Degree of globalization
  • Undertaking generic pharmaceutical and medicine research and development
  • IBISWorld analysts also discuss how external factors such as Federal funding for Medicare and Medicaid and Number of people with private health insurance in the Generic Pharmaceutical Manufacturing industry impact industry performance..

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    What's in this report

    What is the Generic Pharmaceutical Manufacturing Industry?

    Generic pharmaceutical and medicine manufacturers develop prescription and over-the-counter drug products that are used to prevent or treat illnesses in humans or animals. Generic drugs are produced and distributed without patent protection, and industry operators are not significantly engaged in the research and development of new drugs. The industry does not include manufacturers of nutritional supplements or cosmetic beauty products.

    Industry Products
  • Oncology and autoimmune diseases
  • Antihypertensives and lipid regulators
  • Mental health and nervous system
  • Pain and antibacterials
  • Antidiabetics and respiratory
  • Antiulcerants and anticoagulants
  • Industry Activities
  • Developing and producing generic drugs
  • Marketing and distributing generic drugs
  • Gaining regulatory approval for generic drugs
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Federal funding for Medicare and Medicaid
  • Number of people with private health insurance
  • Research and development expenditure
  • Median age of population
  • Trade-weighted index

  • Current Performance
  • Brand name and generic
  • New opportunities
  • Chart: Revenue Growth

  • Industry Outlook
  • Research and development
  • Industry landscape
  • Table: Generic Pharmaceutical Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Generic Pharmaceutical Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Drug, Cosmetic & Toiletry Wholesaling
  • Supermarkets & Grocery Stores
  • Pharmacies & Drug Stores
  • Hospitals

  • Key Selling Industries
  • Biotechnology
  • Chemical Product Manufacturing
  • Medical Device Manufacturing
  • Medical Instrument & Supply Manufacturing
  • Navigational Instrument Manufacturing
  • Soap & Cleaning Compound Manufacturing

  • Products & Services
  • Other
  • Oncology and autoimmune diseases
  • Antidiabetics and respiratory
  • Pain and antibacterials
  • Antihypertensives and lipid regulators
  • Mental health and nervous system
  • Antiulcerants and anticoagulants
  • Chart: Generic Pharmaceutical Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Third-party payers
  • Medicare
  • Medicaid
  • Out-of-pocket
  • Chart: Major Market Segmentation for the Generic Pharmaceutical Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesResearch and development
  • Chart: Cost Structure Benchmarking – Sector vs Generic Pharmaceutical Manufacturing

  • Basis of Competition
    External competitionMethods of competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Generic Pharmaceutical Manufacturing Industry

  • Industry Globalization
    Teva Pharmaceutical Industries Ltd., Mylan Inc., Sandoz Ltd.,
  • Table: Teva Pharmaceutical Industries Ltd. - financial performance
  • Table: Mylan Inc. - financial performance
  • Table: Sandoz Ltd. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Generic Pharmaceutical Manufacturing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Generic Pharmaceutical Manufacturing Industry
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)
  • Total health expenditure (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Abbreviated New Drug Application (Anda)
  • An application for the approval of a generic drug where manufacturers must scientifically prove that their products are bioequivalent to the brand products.
  • Authorized Generic
  • A prescription drug produced by brand pharmaceutical companies and marketed under a private label at a generic product price.
  • Biopharmaceuticals
  • A large protein molecule derived from living sources, as opposed to a chemical substance. Examples include insulin, human growth hormones and antibiotics.
  • Biosimilar
  • Versions of innovator biopharmaceutical products that follow patent and exclusivity expirations on innovator products.
  • Doughnut Hole
  • The Medicare Part D coverage gap; the difference of the initial coverage limit and the catastrophic coverage threshold.
  • Evergreening
  • The process whereby pharmaceutical companies slightly tweak the formulation of their high-profile products to avoid patent expiration.
  • New Drug Application (Nda)
  • An application filed for the approval of a new drug product. Once approved, the product may be marketed in the United States.
  • Patent Cliff
  • A phenomenon wherein revenue for brand name pharmaceuticals drop as the patents for high-profile drugs expire.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Generic Pharmaceutical Manufacturing Industry Research Report contains up-to-date data and analysis, allowing you to identify the strengths and potential weaknesses of major companies in the industry. Build your credibility with clients and prospects by sharing insights into the current and emerging trends driving their industry. Our market research gives you the tools to win new business and keep existing clients.

    IBISWorld industry market research reports enable you to:
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    This report on Generic Pharmaceutical Manufacturing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Generic Pharmaceutical Manufacturing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Generic Pharmaceutical Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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