Austerity Pricing Tactics Support Generic Drug Growth in Europe, Reports GBI Research25 Jul 2012 • by Natalie Aster
Government initiatives to cut health expenditure are likely to encourage sales of generic medications in Europe, according to a new report by healthcare experts GBI Research.
The new report, "Active Pharmaceutical Ingredients (API) Market in Europe to 2017 - Pricing and Reimbursement Initiatives Supporting Generic Drug Growth" predicts an increase in revenue made by generics in the region during the next five years, as cost-containment policies strongly support the consumption of generic drugs over innovative drug use.
Biosimilars are a category of generics, also referred to as generic biotech Active Pharmaceutical Ingredients (API), or follow-on biologics (FOB). API derived from biotechnology provide high-growth market potential, but are expensive to develop and manufacture compared to the production of regular small molecule generic API.
France, Germany and the UK have all tightened their healthcare budgets to tackle the economic crisis, resulting in pressure to reduce pharmaceutical prices. This is bringing about changes in healthcare pricing and reimbursement across the continent. Reimbursement restrictions are applied to drugs that are priced higher than the reference price, and will restrict the growth of the innovative and biologic API markets during the next few years.
However, while reimbursement cuts are expected to decrease the use of innovative, drugs and hinder API revenue, luckily API generics look set to remain popular.
Active Pharmaceutical Ingredients (API) Market in Europe to 2017 - Pricing and Reimbursement Initiatives Supporting Generic Drug Growth
Published: July, 2012
Price: US$ 3.500,00
The expiry of patents for major blockbuster drugs and the entry of low-priced generic versions are expected to increase the consumption of generic drugs, with the weak pipelines of major pharmaceutical companies amplifying this trend. With many patent expiries occurring during 2010-2012, generic consumption is expected to peak, and in turn increase the competition between pharmaceutical producers.
More information can be found in the report “Active Pharmaceutical Ingredients (API) Market in Europe to 2017 - Pricing and Reimbursement Initiatives Supporting Generic Drug Growth” by GBI Research.
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