Abstract
Introduction
Not only is Pharma facing a continued slow down in sales growth in the seven
major markets, but erosion of branded drugs by generics follow patent expiry
is increasing, driven by evolving payer initiatives to incentivize generic use.
Scope of this research
- Understand brand erosion according to formulation, therapy area and brand
value in the seven major markets
- Analysis of the top 10 most eroded brands during Q2 2006 and Q2 2008
- Overview of prices of generic drugs in the seven major markets
- Case studies of successful and unsuccessful strategies to protect the
branded franchise
Research and analysis highlights
Tough competition, a focus on cost-containment and incentives for prescribing
generic drugs, make the US, UK and Germany prone to severe brand erosion
immediately after patent expiry. The US saw the strongest erosion for both
oral and injectable drugs, reflecting the high level of generic substitution
in the US compared to other markets.
Across all markets, the higher the annual sales of a branded drug, the more
intense its generic erosion at patent expiry. Competition among generic
players targeting high value drugs is also fierce, leading to a rapid decline
in generic prices as more players enter the market.
Overall, the most heavily eroded drugs by therapy area in the US were
respiratory drugs, due to the large market size and low entry barriers for
generics companies, while CNS drugs experienced the lowest levels of erosion.
Key reasons to purchase this research
- Identify the different factors that drive brand erosion in the seven major
markets in the first 2 years of generic entry
- Understand the average level of erosion a brand can expect to face
following generic incursion, depending on its formulation, value and ATC group
- Evaluate the success of various reformulation strategies in protecting
brand franchise from generic competition
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