Generic Pharmaceuticals

The large number of patent extensions has resulted in the fast growth of generic manufacturing. Emergence of large international generic manufacturers especially in India is one of the most important developments of the past decade in the pharmaceutical sector. These companies have the potential to transform the way both patented and off-patent products are delivered globally.

International generic manufacturers have provided the world with additional low-cost and high quality manufacturing capacity. Such companies have driven affordability and accessibility through price competition for off-patent drugs, and have also provided their manufacturing capacity to branded products of originator companies through voluntary licensing agreements.

While originator companies can improve future access through mechanisms such as innovative research on new products needed in developing countries, generic manufacturers are key drivers of access to existing remedies. Some originator companies perceive generic manufacturers as a threat, while others see them as an opportunity for voluntary licensing agreements, as a means to expand into Index Countries. Such arrangements can help originator companies recuperate R&D costs through license fees while the generic companies deliver supply capacity and a competitive cost base to feed new markets. Yet, such licensing activities are mostly nascent and in their early stages. The transformational potentials of non-exclusive licensing for access have yet to be realized by more collaboration between originators and generic manufacturers.

Historically, the generic manufacturers, especially those from India, have mostly targeted Index Countries. However, a more favorable regulatory environment and quality improvements in generic manufacturing are making Western markets more accessible and attractive to generic manufacturers. How such a shift in focus in the generic market will affect ATM is yet to be seen, but these developments will be monitored carefully by the Access to Medicine Index team.

By analyzing originator companies and generic manufacturers in separate lists, the Index 2010 is able to highlight the different roles each group can play in improving (or hindering) ATM in Index Countries. Click on the names of the generic manufacturers to understand their ranking position and to access additional company information.