Generic Drugs To Enjoy Greater Market Share

The New York Times reports that over the next 5 years, generic drugs will enjoy an increasing share of the prescription drug market, as patents on several key brand name drugs are set to expire. Already, generic drug manufacturers have produced low-cost versions of Ambien and Norvasc – but coming soon are generics for commonly prescribed drugs like Fosamax, Prevacid, and Lipitor. These generics will help to keep prescription drug inflation rates low.

This phenomenon is mostly just a matter of timing – brand name drug manufacturers were extremely prolific in the 80's and 90's…and just as their products seemed to enter the market all at once, now their patents are expiring all at once.

While brand name drug manufacturers like Johnson & Johnson are planning to downsize in response to the anticipated loss of revenue, generic manufacturers like Teva, Barr, and Mylan are gearing up for increased business in the future.