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. Italy is one of Europe's largest pharmaceutical markets, but the generic market remains very underdeveloped. As in France or Spain, patients and prescribers are used to branded products and concerns remain over the quality of unbranded drugs. In addition, the unusual implementation of Italian patent law in the early 1990s has meant that many drugs off-patent in the rest of Europe are still protected in Italy.

The market is growing, however, pushed by the usual cost-containment imperatives. A number of major generic players are active in Italy, such as Teva, Stada Arzneimittel and, most recently, Ranbaxy.

Under Decree Law No. 87, published in May 2005, generic alternatives of drugs under Class C are promoted, in an effort to contain out-of-pocket pharmaceutical expenditure. As a response, branded manufacturers have reduced their prices, which is containing pharmaceutical expenditure without necessarily encouraging generic consumption.

The development of the Italian branded generic sector requires co-ordinated efforts at central and regional levels, in an effort to contain SSN pharmaceutical expenditure. Currently, the Association of Doctors, the Association of Pharmacists (FEDERFARMA) and consumer associations are going to launch a new awareness campaign for generics.

Generic manufacturers have to contend with national patent supplementary certificates which can be applicable for up to 18 years. These were issued for 400 active ingredients between 19th October 1991 and 2nd January 1993, prior to the enforcement of European patent supplementary certificates. The situation should change from 2010 onwards.

This in-depth report provides a wide-ranging examination of the generic pharmaceuticals market, including the operating environment, current market size, future prospects and five-year market projections.