Pharma Business: Shift from Rx Branded to Trade Generics

PharmaBusiness
Shift from Rx Branded to Trade Generics …
Is Indian Pharma Market heading for disruption the way it happened in the West ?

Trade generics are 50-60 percent cheaper compared to Rx branded medicines.

There is increasing shift taking place by patients towards Trade Generics for the medicines prescribed by their doctors

Besides Jan Aushadhi, numerous private trade generic companies are increasing their share.

Currently, trade generics hold around 20% of the Indian Pharmaceutical Market in terms of Volume and growing at a faster pace than Rx branded products.

The escalating pressure from low-priced generics poses a significant threat to Rx branded pharmaceuticals. This trend mirrors the disruption witnessed in Western countries.

Trade generic companies source their products from reputable contract manufacturing firms, ensuring that the quality of generics remains uncompromised.

Rx branded pharmaceutical companies face three strategic options:

1. Launch a generic division or a generic company.
2. Implement strategies to prevent the erosion of their brands by trade generics.
3. Continue without any strategic shift.

Some pharmaceutical companies have already launched generic divisions, and others may follow suit or adopt alternative approaches.

Exciting times lie ahead for pharma companies.

August 6, 2024

Business Strategy