Branded Generics Market (By Drug Class, By Application, By Route Of Administration, By Distribution Channel) - Industry Analysis, Size, Share, Growth, Trends, Revenue, Regional Outlook and Forecast 2023-2032

The global branded generics market size was valued at USD 231.5 billion in 2022 and is expected to reach around USD 381.6 billion by 2032 with a compound annual growth rate (CAGR) of 5.12% from 2023 to 2032.

Ket Pointers

• By drug class, the anti-hypertensive segment has accounted highest revenue share of 15.8% in 2022.
• The hormones drug class segment is expanding at a highest CAGR, due to rising investments to develop value-added or complex generics.
• By application, the oncology segment is expected to grow at a CAGR of 6.4% from 2023 to 2032.
• By route of administration, the oral segment has accounted for the largest revenue share of around 59.7% in 2022. However, the parenteral segment is expected to reach at a CAGR of 6.8% over the forecast period.
• By distribution channel, the retail pharmacy segment has held revenue share of 58.9% in the market in 2022. However, the hospital pharmacies segment is expected to show moderate growth during the forecast period.
• By geography, North America region has captured revenue share of 21.95% in 2022.
• The Asia Pacific market is projected to grow at the highest CAGR of 6.4% during the projection period.

The rising prevalence of chronic diseases, increasing penetration of branded generic drugs, increasing government initiatives to promote generic products, and patent expiry of major drugs are some of the primary industry growth drivers. The expiry of patent exclusivity of innovator drugs provides opportunities for generic manufacturers to introduce products at a reduced price. The low cost of generic drugs improves patients' affordability and helps reduce healthcare expenditure per capita. For instance, as the U.S. patent exclusivity period of Bristol-Myers Squibb Company proprietary Sprycel (Dasatinib) ended in 2020, generic companies such as Apotex and Dr. Reddy's Laboratories have filed ANDA for the launch of generic versions of the product. 

Moreover, the high frequency of ANDA approvals and the launch of generic products is another crucial factor supporting market growth. According to the FDA’s annual report, in 2021, FDA approved 93 first generics, while the number was 72 in 2020. However, it can be observed that the number of ANDA approvals decreased from 1,014 in 2019 to 948 in 2020, and further decreased to 776 in 2021. Such a decrease in the trend of ANDA approvals for generic drugs could impede industry growth. 

The market has been moderately impacted by the COVID-19 pandemic. During this period, a slowdown and disruption in the supply chain of pharmaceuticals was observed, due to the strategies designed to control the spread of the pandemic. In addition, regulatory operations were also affected, such as the authorization and the Health Technology Assessment process. Decisions on reimbursements have been de-prioritized. It also affected drug prescription and uptake rate moderately. 

For instance, in the U.K., according to the NHS, approximately 20 million antidepressant medications were prescribed in March 2021; in January 2021, the number was around 20.5 million. However, the impact of COVID-19 reduced significantly by the end of 2020 in most countries. Whereas in some countries affected by the third wave of COVID-19, the effect lasted until the third quarter of 2021. 

The growing burden of non-infectious & infectious diseases and the increasing geriatric population, which is more susceptible to chronic diseases, such as hypertension, diabetes, and obesity, are anticipated to positively impact the market growth. There were 537 million patients suffering from diabetes in 2021 globally. The prevalence rate of diabetes is growing rapidly in low- and middle-income countries. According to the International Diabetes Federation data for 2021, approximately 643 million people will be suffering from diabetes by 2030 and 783 million by 2045. 

Companies are introducing novel products to strengthen their portfolio. For instance, in April 2020, Dr. Reddy's Laboratories Ltd. introduced Invista in India. This product is the branded generic version of Sprycel (dasatinib) indicated for the treatment of adult patients with Chronic Myeloid Leukemia (CML).

Branded Generics Market Segmentations:

Branded Generics Market Key Players and Regions Segmentations: