The £2.4 billion UK generics market is one of the world's largest in terms of both size and generic penetration. In 2005 over 59% of prescriptions were dispensed as generics, accounting for 26% of the market value. But fierce competition and price pressure are turning up the heat. How will the market continue to grow?
Key areas addressed:
5-Year market forecast to 2012 for value

The generics market in context of the whole pharmaceutical industry

Pricing issues and reimbursement

Political, legal and economic assessment

Insightful review of 18 major domestic and foreign players in the market

Detailed listing of 18 leading products including prescription data, price comparisons and marketing authorisations

Focus on developing generic markets for statins and proton pump inhibitors The UK generics market has proved a difficult operating environment in recent years. Many established suppliers have experienced declining sales and profitability, due to a number of factors. On the one hand, the market is relatively easy to enter, leading to rapid and fierce price competition for major drugs. On the other, the UK government keeps a close watch on generic drug pricing, and has proved willing to reduce prices for a number of products in recent years.

As in the wider global market, there are signs of ongoing industry consolidation. Teva and IVAX both have a strong presence in the UK, making Teva the clear market leader since its 2006 purchase of IVAX. One new development is the growing arrival of US companies in the market with control of Pliva going to Barr Laboratories in 2006, and Generics (UK) set to become part of Mylan in 2007. There are no major UK-owned generic manufacturers.

But who are the leading players and what are their strengths? What barriers to market entry exist? What marketing authorisations have recently been issued, and to whom? What will be the operating and regulatory environment for companies? The answers to these and many other questions can be found in this 160-page management report Opportunities and Challenges for Generic Drugs in the UK.


OPPORTUNITIES AND CHALLENGES FOR
GENERIC DRUGS IN THE UK
Facts, figures, and analysis of
companies, products and issues.
All you need to know for an informed business judgement!
ISSUES AFFECTING THE UK GENERIC MARKET
When is a generic prescription not a generic prescription?
Despite great emphasis being placed on generic prescribing, a significant number of generic prescriptions are not dispensed as such. For example, in England, generics accounted for 80.1% of written prescriptions and 59.3% of prescriptions dispensed in 2005. This means around 415 million prescriptions were dispensed as generics, and around 145.8 million generically-written prescriptions were dispensed as brands. There are several reasons for this; limited generic availability, availability of a cheaper parallel import brand, or on a few occasions the brand was in fact cheaper than the generic.

Price fixing allegations rumble on
The government, ever watchful of the rising drugs bill has taken action against a number of companies who were accused of price-fixing in the generics sector, although there appears to be no swift conclusion. In 2005, two companies Ranbaxy and Generics (UK) did deals with the Department of Health with regard to its civil action. Neither company has admitted any wrongdoing, but both have pledged to co-operate with the ongoing investigations. Despite this co-operation all the companies identified continue to be part of a criminal case brought by the Serious Fraud Office.

Paediatric SPC/patent extension
In 2005, the European Parliament voted in favour of the Regulation on Paediatric Medicines, which among other things grants an additional six months SPC/patent extension for drugs with additional indications for use in children. This was adopted in 2006 and came into force in January 2007.

Outlook for future growth
While the UK generic market is large by international standards, growth is unlikely to outpace the market as a whole over the next few years. Strong competition among manufacturers exerts a strong downward pressure on prices, as does the continuing government monitoring of the UK generic industry in the wake of its various price-fixing lawsuits.

In addition, the government has proved willing to step in to correct reimbursement prices, where these significantly exceed the market. The April 2005 Drug Tariff had the effect of reducing generic prices, and action has also been taken with regard to the price of specific drugs.

Growth in the market, therefore, is likely to be driven by new products becoming available as generics, and steadily rising consumption. Generics are well accepted by consumers and widely used by doctors.

The report answers key questions such as:
What is the estimated value of the UK generic market now and in 2012?
What is the current pricing and reimbursement situation for generic drugs and how might it change?
The market is set to grow over the next 5 years - what will be the drivers?
Which companies have marketing authorisation for amlodipine and how does the generic compare to the brand?
Major companies in the UK generics industry are merging - will consolidation mean greater price competition?

COMPANIES ANALYSED IN THE REPORT MARKETING AUTHORISATIONS AND PRICE COMPARISONS FOR LEADING PRODUCTS
Actavis UK Ltd
Arrow Generics Ltd
Bristol Laboratories
Crescent Pharma
Dr Reddy's Laboratories (UK) Ltd
Generics (UK) Ltd
Genus Pharmaceuticals
Goldshield Pharmaceuticals Ltd
Focus Pharmaceuticals
Kent Pharmaceuticals
Perrigo UK Ltd
Pliva Pharma Ltd
Ranbaxy (UK) Ltd
ratiopharm UK
Rosemont Pharmaceuticals
Sandoz
Teva UK
Winthrop Pharmaceuticals
Wockhardt UK Ltd Amisulpride
Ramipril
Glimepiride
Ondansetron
Sumatriptan
Amlodipine
Citalopram
Fluconazole
Gabapentin
Lamotrigine
Meloxicam
Sertraline
Tamsulosin
Terbinafine