The latest figures from IMS Health show that worldwide sales for generic drugs increased just 3.6% to $78 billion for the twelve months ending in September, compared to 11.4% growth for the same period last year. The decline is attributed to price competition. In the US, the world’s largest generics market, where generics make up 63.7% of the pharmaceutical market by volume, sales declined 2.7%, but volume rose 5.4%. However, generic sales increased in double-digits in France, Italy, Japan and Spain. The top 10 generic firms account for 47% of the market. Teva, Sandoz and Mylan are the leading generic companies, with respective market shares of 11%, 9% and 8%. The generic industry increasingly consists of large companies and small, locally based firms, which are facing tighter margins. However, longer-term prospects for generics may dim as fewer blockbusters are developed, government plans increase price competition among generics, and they face greater competition from biosimilars.

Source: IMS Health