The size of the North America Generic drugs market has been calculated at USD 87.04 billion in 2023. It is expected to reach USD 121.45 billion by 2028, growing at a CAGR of 6.89% between 2023 to 2028.
Generic drugs have the same dosage, safety, effects, side effects, intended use, risks, and strength as a genuine drug. An example of a generic drug for diabetes is metformin. They are cost-effective compared to branded drugs. Generic drugs are also known as abbreviated drugs. To sell a generic drug, the manufacturing company must submit an Abbreviated New Drug Application for approval. This market will increase tremendously during the forecast period.
The cost-effectiveness of abbreviated drugs has given it a competitive lead over branded drugs in the market. A key driving factor for generic drugs is patent expiry for branded drugs. Patent for Branded drugs with sales of up to USD 135 billion was expired in 2015. Nearly USD 150 billion worth of patents for branded drugs will expire by 2021, which will give generic drugs a huge advantage.
One more trend which influences market growth is outsourcing. Currently, most doctors in the US are prescribing generic drugs, which will improve even further. As a result, vendors are using outsourcing to reduce their capital which will be an advantage to generic drugs. The only restraint for this market is rigid rules set up by the FDA for approval of these drugs and the threat of counterfeit drugs.
Factors such as increased disposable incomes, the cost-effectiveness of the drugs, and the rising prevalence of chronic diseases are significant factors boosting the North American generic drugs market. In addition, the key drivers of the market are patent expiry and the adoption of thorough evaluations by various regulatory agencies to guarantee optimum standards throughout medication manufacture.
There is a lack of awareness among individuals about generic drugs, which is estimated to restrict the growth rate unleashing its full potential. They perceive them as duplicate drugs and do not seem to trust their effectiveness. Many doctors and pharmacists prescribe branded medications over generic drugs to the patients. High competition between drugs can affect the market growth during the forecast period. Also, the FDA has set up strict rules for approval of these types of drugs which makes it difficult to enter the market itself. Also, counterfeit drugs of these generic drugs are abundantly found in the market, which restricts North American generic drugs market growth.
Impact of COVID-19 on the North American generic drugs market:
Due to the global pandemic, the prices of generic medicines elevated due to the sudden increase in the demand for COVID-19 treatment, rising travel and logistics expenses.
It has impacted the demand for generic drugs as the persistence shortage in COVID-19 led to an increase in the demand. Government and manufactures strategic decisions include some collaborations, agreements with market participants. The supply of the generic drugs, as several active pharmaceutical ingredients (APIs) manufacturers in China, was unable to return due to COVID-19; some Indian generic medicine firms faced production interruption as they were the major which eventually impacted the supply chain.
This research report on the North American generic drugs market has been segmented and sub-segmented into the following categories:
Geographically, the U.S. generic drugs market had the highest share of the market in the world in 2022. The generic drugs market in the United States is anticipated to develop rapidly between 2023 and 2028. Generic medicines have seen a significant increase in manufacturing in the United States since they are less expensive than branded pharmaceuticals and do not need considerable research and testing as generic medicines. Thus, it plays a crucial role in the US healthcare sector.
In comparison to the previous year, generic prescriptions increased by 2.2%. Apotex is Canada's largest manufacturer; it is owned and managed by itself. There are around 15 generic medication providers, with 13 businesses having production facilities in the nation.
KEY MARKET PLAYERS:
A few of the promising companies operating in the North America generic drugs market profiled in the report are Ranbaxy Laboratories, Ltd, Actavis, Mylan, Inc., Industries, Ltd., Dr. Reddy’s Laboratories, Par Pharmaceutical, Inc., Sandoz International GmbH, Hospira, Inc., Apotex, Inc., Watson Pharmaceuticals, Ltd., Teva Pharmaceutical and others.
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