The Inevitable Future of Generic Pharma Drugs Companies

Fierce competition and public pressure on pharmaceutical companies pose challenges for ethical and generic pharma companies. 7-10% annual price erosion for generic companies leads to decreased profitability. Increased competition combined with pressure from payers, push margins lower. Competition made its mark on of some global generic players and led to the rise of Indian companies, however price erosion also affects these players. The ability of the generic companies to increase their margins are key elements in their survivor and thrive. The way to achieve that is by utilizing drug delivery technologies that can introduce added-value within limited investments (as low as US$ 10-20M), through the 505(b)2 regulatory process (a similar process has been adopted by the European agency and recently by the Chinese authority). Herein I will share my views on this inevitable future of generic pharmaceutical companies.