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Playing Both Sides: Drug Companies Launch Their Own Generics
| Source: Cutting Edge Information
RESEARCH TRIANGLE PARK, NC--(Marketwire - November 7, 2007) - Branded drug makers plan to
increase authorized generics launches through the end of the decade,
according to a new study by Cutting Edge Information
(http://www.PharmaGenerics.com).
To market an authorized generic, branded pharmaceutical companies license
other drug distributors -- which may be in-house or external firms -- to
sell generic versions of brand-name drugs. The practice helps companies
continue to make money after brands lose patent protection and generic
competition forces prices to drop.
Among the companies surveyed by Cutting Edge Information, authorized
generics are growing in popularity as more organizations seek to retain
critical drug revenues. In comparison to the recent past, almost 75% more
of these companies plan to launch authorized generics by 2010 -- all
through company-owned generic subsidiaries. The same group of companies
also plans to increase its use of external generics distributors by more
than 30%.
These tactics are among the fastest-growing techniques used by brand
companies to maintain revenue in the face of generic competition.
"Authorized generics now commonly appear for brands going off patent," said
Eric Bolesh, research team leader at Cutting Edge Information. "The
increase in corporate-owned generics subsidiaries is especially notable.
Companies are less comfortable handing revenue to external generics
companies who are often also the competition, so they turn to in-house
groups for distribution."
Cutting Edge Information's report, "Combating Generics 2008: Counter
Generics Strategy, Planning and Execution," available at
http://www.PharmaGenerics.com, found that while 11% of companies have
attempted to release generics through corporate-owned subsidiaries, 19%
plan on using this strategy between 2008 and 2010 -- an increase of 73%.
Due to resource needs, generic subsidiaries have typically been limited to
only the biggest industry players. Other drug companies are now exploring
this territory, however, as patent expirations near.
"Combating Generics 2008: Counter Generics Strategy, Tactics and Execution"
examines counter-generics activity at more than 30 different companies.
Data detail investment levels, planning and implementation timelines and
the prominence of different tools and tactics in the fight against
generics. The report's findings also explore case studies and the
experiences of real-world brand teams.
Download a free summary of this 159-page report at:
http://www.cuttingedgeinfo.com/pharmagenerics/PH105_Download.asp#body.