Branded generics Market Size

Branded Generics Market size accounted for USD 238.4 billion in 2022 and is estimated to grow at 6.1% to reach USD 447.8 billion by 2032. The increasing number of patent expiry is set to provide a substantial boost to the market.

For instance, some of the popular medications, including Humira from AbbVie, Januvia & Janumet from Merck, and Victoza from Novo Nordisk, among others, is expected to observe patent expiry in 2023. Therefore, such scenario creates a favourable landscape for generic drug manufacturers to step in. These branded generics offer equivalent therapeutic benefits as the original branded drugs at a lower cost. This cost-effectiveness serves as a major factor driving the demand for these alternatives.

Branded generics, also known as "branded off-patent generics" or "value-added generics," refer to pharmaceutical products that are off-patent but are marketed under a brand name by a company other than the one that originally developed by the drug. These products are essentially generic versions of previously patented drugs that have lost their exclusivity, allowing other manufacturers to produce and sell equivalent versions of the medication.

COVID-19 Impact

The emergence of the COVID-19 pandemic had a positive impact on branded generics market. As healthcare systems faced unprecedented challenges, the affordability and accessibility offered by branded generics became even more crucial. With economic pressures affecting individuals and healthcare budgets, the cost-effectiveness of branded generics emerged as a solution, allowing patients to access essential treatments without financial strain. Moreover, disruptions in global supply chains prompted a shift toward local manufacturing, and branded generics, often produced regionally, stepped in to ensure a stable supply of medications. Such factors have supplemented the market growth during pandemic. Moreover, the established safety profiles and simplified regulatory pathways of branded generics enable swift responses to urgent treatment needs.

Branded Generics Market Trends

The increasing prevalence of chronic diseases is expected to boost the market expansion. For instance, according to the Centers for Disease Control and Prevention (CDC) report, heart disease is the leading cause of death for men, and women in the U.S. In 2021, about 695,000 people in the U.S. died from heart disease. About 1 in 20 adults aged 20 and older have coronary artery disease. As chronic conditions become more widespread globally, the demand for long-term, affordable medications grows exponentially, thereby supplementing the market demand. Furthermore, chronic diseases often require consistent medication regimens to control symptoms and prevent exacerbations. Therefore, branded generics offer a viable solution, ensuring that patients can adhere to their prescribed therapies without compromise, thereby fostering the market share.

Branded Generics Market Restraint

The branded generics industry faces a significant challenge due to the competition posed by both standard generics and brand-name drugs. Standard generics, which are unbranded versions of medications, often have lower production costs due to simpler packaging and the absence of marketing expenses. This cost advantage can make them more appealing to both patients and healthcare providers seeking the most economical option. As a result, standard generics can divert market share away from branded generics, especially in price-sensitive markets. On the other hand, brand-name drugs, despite being more expensive, can carry a perception of higher quality and efficacy due to extensive marketing campaigns and the reputation of the original manufacturer. This perception can lead some patients and healthcare providers to favour brand-name drugs.

Branded Generics Market Analysis

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By drug class, the branded generics market is classified into alkylating agents, antimetabolites, hormones, anti-hypertensive, lipid lowering drugs, anti-depressants, anti-psychotics, anti-epileptics, and other drug classes. The anti-hypertensive segment accounted for 16.7% of the business share in 2022 and is projected to witness significant growth over the analysis timeframe. Increasing prevalence of hypertension is anticipated to accelerate the market growth. For instance, according to the Centers for Disease Control and Prevention (CDC) report, in 2021, hypertension was a primary or contributing cause of 691,095 deaths in the U.S. This surge in cases translates into a heightened demand for effective and affordable treatments.

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Based on application, the branded generics market is segmented into oncology, cardiovascular diseases, neurological diseases, gastrointestinal diseases, dermatological diseases, acute and chronic pain, and other applications. The oncology segment accounted for 29.8% of the revenue share in 2022. Rising abbreviated new drug application (ANDA) approvals and product launches will accelerate the market growth. For instance, there were 88 first-time generics approved in 2021 and 52 approvals through the Competitive Generic Therapy (CGT) route. Such increasing approvals will propel the market growth. Also, increasing cases of cancer across the globe is expected to boost the market growth. Therefore, demand of branded generics is expected to increase, thereby augmenting the segment growth.

Based on route of administration, the branded generics market is segmented into topical, oral, parenteral, and other routes of administration. The oral segment is projected to witness significant growth of 6.4% over the analysis timeframe. The widespread utilization of the oral route of administration for medication delivery serves as a prominent growth driver in the market. Also, advantages associated with oral medication such as ease of administration, enabling self-management and adherence to treatment regimens are anticipated to boost the market growth. Furthermore, Older individuals often prefer the convenience of oral medications due to factors such as ease of ingestion, familiarity, and the absence of invasive procedures. The act of swallowing a pill or tablet aligns with their established daily routines, fostering medication adherence and ensuring consistent therapeutic outcomes.

Based on distribution channel, the branded generics market is segmented into hospital pharmacy, retail pharmacy, and online pharmacy. The hospital pharmacy segment accounted for 49.8% of the business share in 2022 and is projected to witness lucrative growth over the analysis timeframe. Hospitals, as vital centers of healthcare delivery, demand a consistent supply of high-quality medications to treat diverse patient populations. The hospital pharmacies prioritize both patient care and budget constraints. Thus, the affordability of these medications allows hospitals to optimize resource allocation without compromising the quality of treatment, thereby supplementing market expansion. Furthermore, the growing inclination of patients towards choosing hospitals as their preferred treatment destinations is poised to significantly amplify market revenue.

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North America branded generics market accounted for 40.8% revenue share in 2022 and is anticipated to grow at considerable growth rate during the forecast timeframe. A prominent growth driver for the market in North America is the region's robust healthcare infrastructure and the rising emphasis on cost-effective treatments. Also, rising product launches in the region will escalate the market growth. Such initiatives by market players are anticipated to drive the market growth. Moreover, surging government initiatives to promote generic products along with presence of key market in the region is expected to boost the market size.

Branded Generics Market Share

Major market players operating in the branded generics market include:

• Teva Pharmaceutical Industries Ltd
• Lupin
• Sanofi
• Sun Pharmaceutical Industries Ltd.
• Dr. Reddy's Laboratories Ltd
• Endo International plc

These industry players majorly adopt various strategies including collaborations, acquisitions, mergers, and partnerships to create a global footprint and sustain market competition.

Branded Generics Industry News:

• In May 2021, Teva Pharmaceutical Industries Ltd. launched the first generic version of THIOLA (tiopronin) tablets in the U.S. This medication is used for the prevention of cystine (kidney) stone formation in adults and pediatric patients 9 years of age and older with severe homozygous cystinuria. This strategy helped the company to expand their generics portfolio.
  
• In April 2020, Dr. Reddy’s Laboratories Ltd. launched Invista, a formulation of Dasatinib that is bioequivalent to the innovator brand in India. It is indicated for the treatment of chronic accelerated or myeloid or lymphoid blast phase and newly diagnosed in chronic phase adult patients with chronic myeloid leukemia (CML). This strategy helped the company to expand their product offering, thereby generating revenue from its sales.
  

The branded generics market research report includes an in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2018 to 2032, for the following segments:

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By Drug Class

• Anti-hypertensive
• Hormones
• Antimetabolites
• Anti-depressants
• Alkylating agents
• Lipid lowering drugs
• Anti-epileptics
• Anti-psychotics
• Other drug classes

By Application  

• Oncology
• Cardiovascular diseases
• Neurological diseases
• Gastrointestinal diseases
• Dermatological diseases
• Acute & chronic pain
• Other applications

By Route of Administration  

• Oral
• Topical
• Parenteral
• Other routes of administration

By Distribution Channel

• Hospital pharmacy
• Retail pharmacy
• Online pharmacy

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Spain
  • Italy
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • India
  • Australia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • South Africa
  • Saudi Arabia
  • Rest of Middle East & Africa