Urch Publishing | Publication

General Industry

Title

Consolidation in the Generic Pharmaceutical Industry

Sub title

An evolving landscape

Author

Dr P. Norman

Publication date

October 2007

ISBN

978-1-905751-05-1

Pages

Price

pdf £1250 | print £1285

Summary

"For many years generic companies were the poor relations of the pharmaceutical industry, with modest growth rates and little or no transnational business operations. As generics companies have grown, often by acquisition, they have generally developed as international businesses.

There has been a remarkable transformation in the pharmaceutical market, with revenue growth in the generics business turning into a high growth segment. In 2006, global sales of generic pharmaceuticals were $ 77 billion.

The leading two generics companies have both generated sufficient revenues to be described as major pharmaceutical companies. However there are also key issues that impact the growth prospects of the generics companies, such as fewer new therapeutic entities reaching the market- which ultimately reduces the number of opportunities to launch new generic products. Another crucial issue for the generics market is more biological agents. The introduction of biosimilars has several legislative and regulatory constraints for generics companies.

In response to some of these challenges, many leading generic companies have pursued consolidation via mergers and acquisitions, increasing their market muscle and improving their geographical reach. This has made the generics market see a rush of takeovers.

Consolidation in the Generic Pharmaceutical Industry: An evolving landscape closely examines the significant acquisitions in the industry and forecasts which companies are shifting from single country marketing strategies through mergers and take-overs.

Key Features of the Report:

Solid overview of the generics market
Tells the story behind the most competitive acquisitions- and why generics companies are moving to lower cost manufacturing environments,
Assesses the upcoming players in the generics market- Brazil, Mexico, India, China and South Korea
Identifies low penetration markets for short term revenue growth
Profiles 11 generics companies
Points out when the generics market will see slow growth, and why..

Companies mentioned in the report include:
Abbott, Actavi, Allergan, Apotex, Aspen Pharmacare, AstraZeneca, Baxter, Bristol-Myers, Caraco., Chisie, Cinfa, Dr Reddy's, Egis, Gedeon Richter , GlaxoSmithKline, Glenmark, Greenstone (Pfizer), Hikma, Hospira, Krka, Kyowa, Mallinckrodt, Merck, Mylan, Nichiiko, Nicholas Piramal, Novo Nordisk, Par, Perigo, Pliva, Ranbaxy, Ratiopharm, Richter , Sandoz (Novartis), Sawai, Sanofi-Aventis, Stada, Teva , Torrent, Towa, Wockhardt, Zambon, Zentiva, Zydus Cadila.

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Executive Summary

pdf £15

TABLE OF CONTENTS

Executive Summary

Chapter 1: Introduction
Introduction
Generics companies as major pharmaceutical companies
Consolidation to meet new challenges

Chapter 2: Overview of the Generics Market
Introduction
North America

US
Canada

Europe

Western Europe
Central and Eastern Europe

Japan
Emerging markets

Latin America
Asia

Chapter 3: New Challenges
Introduction
Authorised generics

Overview
Financial impact
Outlook

Generic divisions of major companies
Impact of the innovation gap

Biosimilars
Introduction
Entry barriers
Legislative constraints

Patents
Regulatory factors
Europe
US

Outlook

Chapter 4: Consolidation as a Strategy
Introduction
Benefits of consolidation

Economies of scale
Marketing muscle
Geographic focus

Battle for market leadership

Teva vs Sandoz

Highly competitive acquisitions

Pliva
Andrx
Merck Generics

Further consolidation

North America
Europe
India

Other markets
Alternative strategies

Chapter 5: Emerging Players
Introduction
India
China
South Korea
Brazil
Mexico

Chapter 6: Company Profiles
Introduction
Teva
Sandoz
Watson
Barr
Merck KGaA
Ratiopharm
Actavis
Stada
Mylan
Ranbaxy
Dr Reddy's

Chapter 7: Outlook
Introduction
Key developments

New market opportunities
Biosimilars
Declining product opportunities
Increased competition

New strategies

Consolidation
Biosimilars
Product differentiation

References

List of Figures
Figure 2.1 Predicted market growth rates for generics, 2006-11
Figure 2.2 Distribution of global generics revenues by market, 2006
Figure 2.3 Growth in US generic drug sales, 1984-2006
Figure 2.4 Market penetration of generics in European countries, 2006
Figure 2.5 Growth rates of major Latin American markets, 2000-05
Figure 3.1 US sales of paroxetine, July 2003-May 2004
Figure 3.2 FDA approvals of new therapeutics, 2000-06
Figure 6.1 Geographical distribution of Teva's revenues, 2006
Figure 6.2 Geographical distribution of Sandoz's revenues, 2006
Figure 6.3 Geographical distribution of Pliva's revenues, 2006
Figure 6.4 Geographical distribution of Merck KGaA's revenues from generics, 2006
Figure 6.5 Geographical distribution of Actavis's revenues, 2006
Figure 6.6 Breakdown of Stada's revenues, 2006
Figure 6.7 Geographic distribution of Stada's revenues, 2006
Figure 6.8 Therapeutic distribution of Mylan's revenues, 2006
Figure 6.9 Geographic distribution of Ranbaxy's revenues, 2006
Figure 6.10 Geographic distribution of Dr Reddy's revenues, fiscal 2007
Figure 7.1 Number of significant new generic opportunities in the US, 2007-11

List of Tables
Table 1.1 Sales of leading generics manufacturers, 2006
Table 2.1 Total and generic pharmaceutical sales in Western European (EU) countries, 2006
Table 2.2 Total pharmaceutical sales in Central and Eastern European countries, 2006
Table 2.3 Major Latin American markets, 2006 sales
Table 3.1 2006 sales revenues of NCEs approved by the FDA in 2001
Table 3.2 Leading biotechnology products, 2006
Table 4.1 Major acquisitions by Teva and Sandoz, 1996-2006
Table 4.2 Leading Indian generics manufacturers, showing sales revenues for fiscal 2006 (mostly year ending 31 March 2007) and market capitalisation in April 2007
Table 5.1 Acquisition deals made by Indian pharmaceutical companies, 2005-07
Table 6.1 Actavis's leading products, 2006
Table 6.2 Stada's leading products, 2006

General Industry

Peter Norman MBA PhD is a pharmaceutical consultant and analyst with specialist knowledge of the respiratory disease and therapeutic markets. Dr. Norman has over 20 years experience of the pharmaceutical industry in both R&D and competitive intelligence. His publications include many reviews and management reports, sixteen original scientific papers and eleven patents. Dr. Norman holds science degrees from Cambridge University and Brunel University plus an M.B.A. degree from the Open University.