Forecast Predicts Generic Drug Market Will Grow Upwards of $175B Over the Next Three Years
Technavio analysis notes that an increase drug patent expirations could be a contributing factor.
The generic drug market is expected to show significant growth in the coming years.
At least, that’s according to a new study conducted by Technavio, a leading global technology research and advisory company.1 In a press release, the research company detailed the estimated growth, stating that it believes the market will grow by $176.25 billion by 2027. It also states that North America will contribute about 37% of this growth.
In the press release, a senior analyst at Technavio said, “The rising drug patent expirations are notably driving the generic drug market growth. Patent expirations enable companies like Abbott to produce generic drugs with the same APIs as brand-name drugs, making them more affordable. After patent expiration, companies can create branded generics, as any manufacturer can apply to the FDA for a chemically identical generic version.”
According to the study, the US and Canada will both play a significant role in the market’s expansion. This is due to a variety of reasons, including the population’s exposure to conditions that can cause chronic diseases. Another key factor is the need for low-cost alternatives to brand name drugs, which are typically more expensive.
It’s unclear at this point how governmental regulations in the region might impact these estimates. For example, the Inflation Reduction Act (IRA) has certain drug pricing provisions that could impact drug patents. This regulation is still being negotiated however, and it’s unclear what state it will be in when various provisions go into effect. The upcoming US election could also impact the status of the IRA.
However, as drug patents are set to expire in the coming years, generics are bound to make it to market. With drug prices being an important issue, especially for citizens of and companies operating in the United States, less expensive biosimilars are attractive alternatives. According to the report, the small-molecule generics market is going to be significant in the coming years.
Reference
- Generic Drugs Market to grow by USD 176.25 billion from 2022 to 2027, North America is estimated to contribute 37% to the growth – Technavio. Technavio. February 7, 2024. Accessed February 8, 2024. https://www.prnewswire.com/news-releases/generic-drugs-market-to-grow-by-usd-176-25-billion-from-2022-to-2027--north-america-is-estimated-to-contribute-37-to-the-growth---technavio-302056699.html
