Riding high: A new wave of patent expirations will spur demand for industry products

Over the past five years, generic prescriptions have accounted for a larger share of total prescriptions dispensed by volume. According to data from the Canadian Generic Pharmaceutical Association, the average generic drug retail price declined during the past decade. To cut healthcare costs, many provinces and territories have set more stringent price caps for generic drugs, effectively preventing generics from exceeding a set share of the brand name drug equivalent's price. Still, robust generic drug utilization rates have buoyed industry demand. Since a large portion of healthcare costs are covered by federal healthcare plans, the government encourages the consumption of generic drugs due to deep discounts compared with their brand name counterparts...read more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23

Industry Threats & Opportunities

  • More biosimilar drugs will be able to enter the market, boosting industry revenue
  • Generic drug manufacturers will continue to enter the industry to cater to niche markets
  • A new wave of patent expirations and the growing biosimilar market will spur demand
  • Industry Report - Industry Key Buyers Chapter

    Market share concentration in the Generic Pharmaceutical Manufacturing industry in Canada is low but steadily consolidating, with the six largest industry players generating 37.3% of total industry revenue in 2018, up from 33.1% in 2013. Acquisition activity has increased market share concentration in recent years, which is the preferred choice for market entry and dominance by multinational corporations.While the domestic Generic Pharmaceutical Manufacturing industry is only moderately saturated, market share concentration is significantly more concentrated by therapeutic class. For example, Apotex has focused its product portfolio on hyperimmune products, whereas Teva focuses on oncology and pain management. Sti...purchase to read more.

    Additional Insights for the Generic Pharmaceutical Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Generic Pharmaceutical Manufacturing Industry are

  • Undertaking technical research and development
  • Effective cost control
  • Ability to negotiate successfully with regulator
  • IBISWorld analysts also discuss how external factors such as Total health expenditure and Research and development expenditure in the Generic Pharmaceutical Manufacturing industry impact industry performance..

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    What's in this report

    What is the Generic Pharmaceutical Manufacturing Industry?

    This industry develops prescription and over-the-counter drug products that are used to prevent or treat illnesses in humans or animals. Generic drugs are produced and distributed without patent protection and industry operators are not significantly engaged in the research and development of new drugs. The industry does not include manufacturers of nutritional supplements or cosmetic beauty products.

    Industry Products
  • Nervous system and cardiovascular system
  • Antineoplastic and immunomodulating agents
  • Alimentary tract and metabolism
  • Respiratory system and sensory organs
  • Antiinfectives for systemic use and blood/blood-forming organ drugs
  • Musculoskeletal system
  • Genitourinary system and hormones
  • Industry Activities
  • Gaining regulatory approval for generic drugs
  • Developing and producing generic drugs
  • Marketing and distributing generic drugs
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Total health expenditure
  • Research and development expenditure
  • Canadian effective exchange rate index
  • Number of adults aged 65 and older

  • Current Performance
  • High demand, pricing pressures
  • International markets
  • Chart: Revenue Growth

  • Industry Outlook
  • New products, new demand
  • Changing demand, changing landscape
  • Table: Generic Pharmaceutical Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Generic Pharmaceutical Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Pharmaceuticals & Pharmacy Supplies Wholesaling in Canada
  • Supermarkets & Grocery Stores in Canada
  • Pharmacies & Drug Stores in Canada
  • Emergency & Other Outpatient Care Centres in Canada
  • Hospitals in Canada

  • Key Selling Industries
  • Biotechnology in Canada
  • Brand-Name Pharmaceutical Manufacturing in Canada
  • Chemical Product Manufacturing in Canada
  • Generic Pharmaceutical Manufacturing in Canada
  • Soap & Cleaning Compound Manufacturing in Canada

  • Products & Services
  • Nervous system and cardiovascular system
  • Antineoplastic and immunomodulating agents
  • Antiinfectives for systemic use and blood/blood-forming organ drugs
  • Alimentary tract and metabolism
  • Respiratory system and sensory organs
  • Other
  • Genitourinary system and hormones
  • Musculoskeletal system
  • Chart: Generic Pharmaceutical Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Exports
  • Chain and banner pharmacies
  • Nonchain pharmacies
  • Other
  • Healthcare facilities
  • Chart: Major Market Segmentation for the Generic Pharmaceutical Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Generic Pharmaceutical Manufacturing

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Generic Pharmaceutical Manufacturing Industry

  • Industry Globalization
    Apotex Inc., Pharmascience Inc., Teva Pharmaceutical Industries Ltd., Novartis AG,
  • Table: Apotex Inc. - financial performance
  • Table: Pharmascience Inc. - financial performance
  • Table: Teva Pharmaceutical Industries Ltd. - financial performance
  • Table: Novartis AG - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Generic Pharmaceutical Manufacturing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Generic Pharmaceutical Manufacturing Industry
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)
  • Total health expenditure (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Active Pharmaceutical Ingredient (Api)
  • A substance used in a finished pharmaceutical product intended to furnish pharmacological activity.
  • Antineoplastic Agents
  • Drugs designed to control or kill neoplasms, or tumors
  • Biologic Drugs
  • Biologic drugs are medicines made from living cells, often used to prevent and treat a variety of illnesses including cancer, autoimmune disorders and infectious diseases.
  • Biosimilar Drugs
  • Drugs that are almost the same as a biologic drug. Only slight modifications to the "reference product" are required for this classification, without any clinically meaningful differences.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Generic Pharmaceutical Manufacturing market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    IBISWorld industry market research reports enable you to:
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    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
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    This report on Generic Pharmaceutical Manufacturing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Generic Pharmaceutical Manufacturing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Generic Pharmaceutical Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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