Generic Strategies in Emerging Markets

Healthcare

Publication Date	August 2009
Publisher	Datamonitor
Product Type	Report
Pages	55
ISBN Number	not applicable
Product Code	DAT15363

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Summary

Introduction

The emerging markets are luring a growing number of pharma companies looking to compensate for the diminishing revenues in developed markets. Latin America and Central and Eastern Europe (CEE) are showing strong growth rates, proving to be lucrative targets for firms aiming to expand their foothold, initially as a generics player, but also providing a foundation for subsequent brand penetration.

Scope

Provides an overview of recent events affecting the generics market in the CEE and Latin America
Identifies the different barriers and opportunities for growth in the CEE and Latin America
Provides insight into the growth drivers of multinational and domestic generic players operating in these regions
Identifies key strategies for entrance and expansion in these markets

Highlights

Sales growth in the CEE generics market is slowing due to increasing competition among generics players, while the Latin American market continues to grow, with significant room for further expansion. Consequently, the Latin American market offers multinationals a better opportunity due to is comparatively greater growth potential.

Indian generics firms are showing a growing interest in the Latin American generics market, especially Brazil. However, going forward, this may undermine the success of domestic players in this region, as Indian generics companies have a ready source of active pharmaceutical ingredients (APIs) and an established low cost manufacturing base.

Generic penetration across the CEE is consistently high due to the historically poor enforcement of intellectual property (IP) laws. However IP issues and competition from similares (non-bioequivalent drugs) hamper penetration of true generics in Latin America, although new regulations have been implemented to target this issue.

Reasons to Purchase

Understand how recent events and trends will affect the generics industry in the CEE and Latin America
Gain insight into which companies are growing rapidly and which strategies are employed
Identify the different benefits of entering the CEE and Latin American markets

Content

about The Strategic Pharmaceutical Analysis Team
Chapter 1 Executive Summary
- Strategic scoping and focus
- Datamonitor insight into the emerging markets
- Related reports
- Table of Contents
Chapter 2 Generics in Emerging Markets - Latin America Versus Central Eastern Europe
- Key findings
- Overview of generics in emerging markets
- Emerging markets offer the greatest opportunity for growth despite some obstacles
- Branded Pharma's drive into the emerging markets
- Drivers and resistors of the generics markets of Latin America and Central and Eastern Europe
- Drivers and resistors for multinational entry in the CEE generics markets
- Drivers and resistors of the Latin American generics markets
- Generics penetration in the emerging markets is higher than in the mature and immature generics markets
- Generic penetration in CEE is high despite generating small sales
- Generics in Latin America show different levels of penetration
- Recent regulatory changes in key Latin American countries
- IP laws in Latin America must be strengthened to attract foreign companies
- Inadequate and ineffective IP laws in Argentina, Chile and Venezuela have spurred the growth of fake drugs
- Regulatory changes are creating fertile ground for the generics industry
- Argentina's generic sector boosted by the Generics Law and the Remediar program
- Mexico is phasing out similares thereby attracting more foreign generic companies
- Brazil's generic industry is thriving thanks to mandatory bioequivalence testing
- Emergence of pharmacy chains in Latin America promotes generics use
- Recent regulatory changes in key Central and Eastern European countries
- IP laws in CEE are being aligned with the rest of Europe
- Czech Republic must eliminate counterfeit drugs
- Romania must prosecute IP infringers
- Poland's IP laws have improved, leaving opportunities for generic players
- Bulgaria has made significant progress in IP protection
- Generics are often priced based on a referencing system
- Generic regulatory changes will affect foreign generic companies in Romania but boost the generic segment in Poland and the Czech Republic
- There could be a shortage of drugs in Polish pharmacies if companies fail to re-register medicines
Chapter 3 Generics Company Strategies in The Emerging Markets
- Key findings
- Comparative overview of Central and Eastern European and Latin American generics company strategies
- Differences between generics company strategies in CEE and Latin America
- Big Pharma strategies for accessing the emerging markets
- Multinational generics company strategies for accessing the emerging markets
- Analysis of the key domestic and international generics companies in Central and Eastern Europe
- Domestic generic companies in CEE
- Krka achieves rapid volume growth by expanding throughout the CEE markets
- Zentiva is a necessary asset for Sanofi-Aventis's diversification strategy and penetration of the CEE
- International generic companies in the CEE
- Actavis has seen remarkable sales growth due to aggressive acquisitions
- Teva increased its presence in the CEE through its acquisition of Barr
- Ranbaxy penetrates the Romanian market by acquiring Terapia
- Analysis of the key domestic and international generics companies in Latin America
- Domestic generic companies in Latin America
- Leading domestic company EMS straddles generics and similares sectors
- Eurofarma is aiming to diversify away from small molecule generics
- Medley's rapid growth has convinced Sanofi-Aventis to establish a foothold in the Brazilian market
- International generic companies in Latin America
- Glenmark has recently split its operations into innovative and generic drugs
- Ranbaxy is expanding throughout Latin America
- Dr Reddy's is targeting both the retail and hospital sector
- Sanofi-Aventis earns the leading position in emerging markets
Chapter 4 Bibliography
- Publications and online articles
- Datamonitor reports
Appendix
- about Datamonitor
- about Datamonitor Healthcare
- Datamonitor consulting
- Disclaimer
List of Tables
- Table 1: Average size and growth rates for domestic and multinational generic companies in Central and Eastern Europe, 2004-08
- Table 2: Average size and growth rates for domestic and multinational generic companies in Latin America, 2004-08
- Table 3: Annual growth (%) for the top Indian generic companies in Central and Eastern Europe and Latin America, 2007-08
- Table 4: Actavis's acquisitions reflect a strategy to broaden and deepen its presence in the generics sector, 2004-08
List of Figures
- Figure 1: Geographical split of the global generics market, 2009
- Figure 2: The global generics continuum
- Figure 3: The emerging markets for generics are proving especially attractive
- Figure 4: Global pharmaceutical sales, 2007-2012
- Figure 5: Drivers and resistors for multinationals entering Latin America or Central and Eastern Europe
- Figure 6: Central and Eastern Europe has the highest generic penetration, 2008
- Figure 7: Market share of generics and generics sales in Central and Eastern Europe versus other European countries, 2007
- Figure 8: The varying levels of generic penetration in Latin American countries, 2007-08
- Figure 9: Multinational versus domestic growth rates by volume and value in Central and Eastern Europe, 2004-08
- Figure 10: Multinational versus domestic growth rates by volume and value in Latin America, 2004-08
- Figure 11: Domestic generic companies in Central and Eastern Europe by volume and value, 2004-08
- Figure 12: International generic companies in Central and Eastern Europe by volume and value, 2004-08
- Figure 13: Domestic generic companies in Latin America by volume and value, 2004-08
- Figure 14: Medley provides significant diversification of Sanofi-Aventis's Brazilian portfolio, 2008
- Figure 15: International generic companies in Latin America by volume and value, 2004-08
- Figure 16: Glenmark has reorganized into two separate business units with a different strategic focus