Depending on your viewpoint, generic drugs represent either the future of the global pharmaceutical industry or an irritating drain on the revenues of R&D based companies. The sector continues to grow in importance, fuelled by the twin pressures of therapeutically significant products coming off patent and health provider demands for lower prices. Analysts in industry and commerce must have a clear understanding of the threats and opportunities in key markets worldwide.

Generics market reports from Espicom Business Intelligence are produced by a multi-lingual editorial team with over 25 years pharmaceutical market experience. And when that experience is combined with one of the best healthcare market databases around, and informed by direct access to over 1200 companies and organisations worldwide, you have unbeatable, reliable, qualified and enriched market analysis. Generics have been little-used in France until recently. The market is dominated by branded products, even for older drugs.

The French government is keen to control healthcare costs, and reducing pharmaceutical expenditure is a major aim. Several attempts have been made to promote generics through the reimbursement system, most successfully in mid 2002. An agreement has recently been signed between the public health insurer and pharmacists, aimed at boosting generic dispensing where possible.

Generic use is expanding; growth was very rapid in 2002/03, of course from a very low base. While this growth will slow, the generic sector will outperform the market in the next few years. Generic penetration is estimated to rise to nearly 19% by 2011.

France has a number of medium-sized generic companies. These tend to be foreign-owned, by companies such as Merck KGaA, Sandoz, Ranbaxy and Teva. The leading local company is Biogaran, owned by Servier.