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16.00 – 17.00
The Future of the Generics
Industry
Facilitated by:

Luigi Martini
Panellists Include:

Ewan

Livesey

Alan
Sheppard

Kim

Kjornas
Global Spending on Medicines Outlook to 2016
Global spending on medicines annually will grow
to nearly $1.2 trillion by 2016, as the pharmerging
markets, biologics and generics contribute a
greater share of spending.
Developed markets will suffer due to patent expiries,
slower brand spending growth and increased cost
containment actions by payers.
Pharmerging markets share of spending will
increase as population and economic growth will
drive a dramatically higher use of medicines in these
markets with a demand for affordable therapies.
There will be an accelerated shift in spending to
generics.
Where generics can help in the current environment
Environment
	
  
•  Financial	
  crisis	
  and	
  implica.ons	
  
•  Growing	
  Pa.ent	
  expecta.ons	
  

Generic	
  medicines
	
  
Short	
  term
	
  

Cost	
  reduc.on	
  and	
  access	
  to	
  affordable	
  medicines	
  

Long	
  term
	
  

•  Rapidly	
  evolving	
  technologies	
  

Increase	
  efficiency	
  and	
  provide	
  headroom	
  for	
  	
  
spend	
  on	
  new	
  therapies	
  

Pressure	
  on	
  healthcare	
  systems	
  

Socio	
  economic	
  factors
	
  
•  Ageing	
  popula.on	
  /	
  chronic	
  disease	
  
•  Medical	
  advancements	
  
•  Specialty	
  care	
  /	
  Biologics	
  
The way ahead?
Affordability of healthcare will remain a challenge for several
years to come. Expenditure on medicines represents around
20% of the cost with expenditure on generic medicines being
only 20% of this spend. As such generic medicines should be
seen as a potential solution to the problem
A longer term strategy of increasing usage of generics will
generate ongoing savings and maintain access to medicines
for patients
Expanding the use of generic medicines allows for treatment of
more patients within budgets without changing therapeutic
approach
Lowering prices threaten sustainability of the industry
Fair margins within the supply chain can be a stabilizing factor

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The Future of the Generics Industry

  • 1. 16.00 – 17.00 The Future of the Generics Industry Facilitated by: Luigi Martini Panellists Include: Ewan Livesey Alan Sheppard Kim Kjornas
  • 2. Global Spending on Medicines Outlook to 2016 Global spending on medicines annually will grow to nearly $1.2 trillion by 2016, as the pharmerging markets, biologics and generics contribute a greater share of spending. Developed markets will suffer due to patent expiries, slower brand spending growth and increased cost containment actions by payers. Pharmerging markets share of spending will increase as population and economic growth will drive a dramatically higher use of medicines in these markets with a demand for affordable therapies. There will be an accelerated shift in spending to generics.
  • 3. Where generics can help in the current environment Environment   •  Financial  crisis  and  implica.ons   •  Growing  Pa.ent  expecta.ons   Generic  medicines   Short  term   Cost  reduc.on  and  access  to  affordable  medicines   Long  term   •  Rapidly  evolving  technologies   Increase  efficiency  and  provide  headroom  for     spend  on  new  therapies   Pressure  on  healthcare  systems   Socio  economic  factors   •  Ageing  popula.on  /  chronic  disease   •  Medical  advancements   •  Specialty  care  /  Biologics  
  • 4. The way ahead? Affordability of healthcare will remain a challenge for several years to come. Expenditure on medicines represents around 20% of the cost with expenditure on generic medicines being only 20% of this spend. As such generic medicines should be seen as a potential solution to the problem A longer term strategy of increasing usage of generics will generate ongoing savings and maintain access to medicines for patients Expanding the use of generic medicines allows for treatment of more patients within budgets without changing therapeutic approach Lowering prices threaten sustainability of the industry Fair margins within the supply chain can be a stabilizing factor