Consolidation in the Generic Pharmaceutical Industry

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.

• 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