Emerging Generic Pharmaceuticals Markets in Europe

Restricted Healthcare Budgets Push Popularity of Generics

Government and healthcare authorities in Europe, concerned with the rising cost of pharmaceuticals, are striving to promote the use of generics over high-priced originator drugs. This strategy will help meet their constrained healthcare budgets. However, pricing and reimbursement policies in Europe are very complex; each country has its own set of policies governing generics. This is leading to uneven penetration of generics. The launch and uptake of generics is being delayed due to the lack of coherent reimbursement and substitution policies across Europe. A coherent and uniform generics policy should be implemented across all European countries, states the analyst of this research. It should primarily address both supply-side (pricing and reimbursement) as well as demand-side (physicians, pharmacists and patients) factors. In addition, healthcare authorities and generics industry participants should take various measures to convince physicians, pharmacists and patients of the bio-equivalence of generic and originator medicines. Regulatory issues in the emerging generic pharmaceuticals markets of Italy, Portugal, Spain and France are in the process of being streamlined in order to fuel the adoption of generics. Reforms are underway in these countries to draw level with highly genericised countries such as the United Kingdom. Burdened by cost constraints and faced with the rising cost of pharmacueticals, governments and healthcare authorities in key underpenetrated countries (Spain, France, Italy and Portugal) are supporting the use of generics over high-priced originator drugs. Continuing patent expiries are also feeding the generics pipeline.

Uneven Pricing and Reimbursement Pose Challenges

European pricing and reimbursement policy is very complex. Each country has its own set of policies governing generics, which is leading to uneven generics penetration. Further, physicians in most under-penetrated European countries prefer innovator drugs to generics. The launch and uptake of generics is being delayed due to the lack of reimbursement and substitution policies, says the analyst of this research. Variations in pricing and reimbursement approvals hinder the development of a competitive European generic pharmaceuticals industry. A consistent generics policy should be implemented across all European countries. This would aid in the development of a competitive generic pharmaceuticals market. Such a policy should account for both the supply-side as well as the demand-side, advises the analyst of this research. In addition, healthcare authorities and generics industry participants should undertake various measures to convince physicians, pharmacists and patients of the bio-equivalence of generic and originator drugs.

Market Sectors

Expert Frost & Sullivan analysts thoroughly examine the following countries in this research:

• Italy
• Portugal
• Spain
• France