As generics markets are becoming more mature, size is playing an increasingly important role. Larger companies and niche players may be able to sustain their profitability by making adjustments to their operations, but mid-sized competitors see their existence as being threatened. Owners and managers at these firms are discussing a wide range of options. Viable options for mid-sized generics businesses follow a limited number of strategies. Waiting for better times is not on that list.
FeickK. (2004) ‘Patent expiries and the prospect of cost savings to underline the popularity of generics and biogenerics in Europe’, Business Briefings, PharmaGenerics, 21st October.
The threats and opportunities addressed in this paper are applicable to mid-sized companies covering a broad range of revenues, from low double-digit to high triple-digit millions of sales, depending on their geographical footprints.
6.
GoodmanM. (2004) ‘Implications of Emerging Indian Pharma, Part II’, Morgan Stanley.
7.
TurnerN. (2004) Presentation at Generics Conference, March—April 2004, Barcelona, Spain.
8.
Source: NDC Health.
9.
See also KermaniF. (2004) ‘Generics companies: Aspiring to innovate’Journal of Generic MedicinesVol. 1, No. 4, pp. 336–346.
10.
Andrx announced in January 2005, however, that it will exit its brand business and focus on its core competencies of formulation development of controlled-release Pharmaceuticals and distribution. See www.andrx.com, accessed 20th March 2005.
