Generics are drugs which have the same active ingredient as the initial supplier's respective product and have the same therapeutic effect, but can be offered at significantly lower prices after expiration of the patent or other relevant industrial property rights.
In financial year 2015, sales in the international generics market increased by approx. 8.5%1) to approx. € 169.8 billion1) as compared to the previous year. The market share of generics in the global pharmaceutical market amounted to approx. 17.2%1).
For the expansion of the core segment Generics, STADA and the STADA subsidiary BEPHA Beteiligungsgesellschaft für Pharmawerte mbH signed a contract in the fourth quarter of 2015 to purchase the Argentinian generics producer Laboratorio Vannier S.A., which sells its products in niches which are subject to few price regulations, particularly on conditions of the central nervous system (CNS), cardiology and diabetes. The purchase was completed in the first quarter of 2016.2)
According to the estimate of the STADA Executive Board, generics continue to have growth opportunities within the pharmaceutical market, as they ensure a cost-effective medicative therapy without any loss in quality and, at the same time, counteract increasing cost pressure in the individual health care markets. In addition, the potential available for generics competition is constantly being expanded due to the expiration of patents or other commercial property rights.
These views are also confirmed by forecasts of IMS Health, a leading international pharmaceutical market research institute.
In the generics area, biosimilars in particular will play an increasingly important role in the future, as they can contribute significantly to containing costs in the individual national health care markets. Already in 2014, a paradigm shift took place, as, for the first time ever, there were more patent expirations among biopharmaceutical products than chemical-synthetic products. Overall, twelve of the strongest biologics in terms of sales will have lost their patent protection by 20203).
In light of this growth potential, STADA consistently continues to pursue its strategy of in-licensing biosimilars specifically from highly specialized suppliers, since this represents the course with a lower risk and lower costs for the Group than relying on in-house developments.
Please see our Annual and Interim Reports for more information on generics.
Top 5 generic active ingredients in products of the STADA Group in 2015
1) IMS Market Prognosis, September 2015; IMS Market Prognosis Global, September 2015; IMS Syndicated Analytics Service (September) 2015; prepared for STADA February 2016.
2) See the Company’s press release of December 10, 2015.
3) Source: “Deutsches Ärzteblatt” (a German medical journal) of March 14, 2014; 111 (11): A-452 / B-388 / C-372: Biosimilars: Das Wettrennen ist in vollem Gange (Biosimilars: The race is well underway).