The landscape of the generics industry is changing due to a number of high-profile mergers. Mylan Laboratories, a generics manufacturer based in Pennsylvania, jumped to third place in sales ranking among generic firms after purchasing a controlling stake in the Indian generic Matrix Laboratories in January and acquiring the generics division of Merck KGaA in Germany for $6.7 billion this month. In 2006 the Israeli firm Teva Pharmaceutical Industries, which leads the industry in sales and has a 20% share of the US generics market, bought Ivax. Icelandic Actavis, which has purchased over 25 companies in the past seven years, reached sixth place last year. As of December 2006, the top four generics firms had a combined 56% market share, up from a 35% market share 10 years before. The generic share of prescriptions in the US has increased from 47% in 2000 to 63% in 2007. Industry insiders think that smaller generics companies can succeed by pursuing niche markets, but believe that midsized firms are in for a difficult future.

Source: Nature

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