Special Report: Patterns of Generic Erosion: An International Chartbook

Decision Resources
December 1, 2011
SKU: DECR6737846
License type:
Faced with relentlessly increasing healthcare expenditures, payers in all countries are increasingly interested in stimulating greater use of generics as a relatively painless approach to cost containment. An analysis of the rates of generic erosion of ten drugs-five cardiometabolic agents and five central nervous system (CNS) therapies-that have lost market exclusivity in recent years shows enormous variations in originator brands' market share in the United States and the five largest European markets.

Questions Answered
  • The United States has by far the most aggressive rates of generic erosion of any of the major pharmaceutical markets. How has the U.S. generics market evolved in recent years? What measures have payers adopted to promote greater use of generics? How do rates of generic erosion compare for leading cardiometabolic and CNS drugs?
  • The French generics market has grown steadily in recent years but remains much smaller than the most mature generics markets. What policies has the government implemented to expand the generics market? How did generics' market share increase from 1999 to 2010? To what extent did originator brands' market shares decline after eight quarters of generics competition?
  • Germany has the largest generics market in Europe and one of the highest generics-dispensing rates in Europe. How has the generics' market grown from 1981? What measures targeted at manufacturers, physicians, and patients account for the growth of the generics market? What share of the market do branded cardiometabolic and CNS drugs retain eight quarters after the loss of market exclusivity?
  • Generics have a much smaller market share in Italy than in any of the other major pharmaceutical markets. What have been the main impediments to growth of the Italian generics market? What measures has the government recently adopted to stimulate demand for generics? What are the rates of generic erosion following patent expiration?
  • Consumption of generics in Spain has grown steadily in recent years. What reforms introduced in 2010 and 2011 have intensified the government's strategy to promote more extensive use of generics? How fast do cardiometabolic and CNS brands lose market share after the onset of generics competition?
  • The U.K. healthcare system has encouraged rather than compelled physicians and pharmacists to use generics whenever possible. How effective has this policy been in stimulating the generics market? What action have local payers taken to promote the use of generics? How do U.K. rates of generic erosion compare with those in other leading pharmaceutical markets?
Scope

Geographic scope: United States, France, Germany, Italy, Spain, United Kingdom.

Market environment: evolution of generics' market share and implementation of measures to stimulate the use of generics in each of the markets under review.

Generic erosion: detailed analysis of originator brands' loss of market share over eight quarters for five cardiometabolic and five CNS drugs that have lost market exclusivity in recent years.

Outlook and implications for the pharmaceutical industry: increasing pressures on healthcare payers around the world; likely strategies to promote more extensive use of generics; implications for new branded drugs.

Please note, the PDF e-mail from publisher version of this report is for a global site license.