Pharmaceutical Executive Europe - September 2006 - (Page 33)

Top Five Trends IMS Health's new approach to market segmentation shows that the generics industry has reached a pivotal time in Europe. unprotected original brands, generics and copy rowth of the generics market has been Eva Edery G products is worth $42 billion in the top five consistently outperforming the overall is senior consultant, Global European markets, representing over 40% of total pharmaceutical market in the top five European Pharma Strategy, at IMS Health, market sales in these countries. territories France, Germany, Italy, Spain and the UK UK. In value terms at ex-manufacturer prices excluding since 2002. Currently growing at more than twice discounts generics are estimated to be worth around the rate of patent-protected products Figure 1 , $17 billion in the top five European markets, generics now represent 17% of total sales in value in representing about 22% of global generics sales. Of these key markets significantly more than the 11% this, 38% is represented by branded generics, 37% by share they have so far achieved in the US and 38% company branded generics and 25% by unbranded share of volume. As cost-containment measures products. Within the unprotected market, generics continue to bite more consistently across the region, penetration in the top five European countries is and increasing emphasis is placed on promoting currently around 41% in value and around 50% in generic prescribing and dispensing, their ongoing volume. The fact that this is not higher could be due and strengthened growth seems guaranteed. to the lack of an exciting opportunity, manufacturing Insights on the size, composition and dynamics of difficulties, or the fact that the original R&D this burgeoning sector in Europe are made possible manufacturers employed a concerted strategy to by the IMS Market Segmentation Feature, a new and protect their original brand or convert some patients unique approach to classifying the international from that brand to a follow-up product or release pharmaceutical market. Based on a split of the total formulation and so forth. market into originally protected and never-protected Past examples of this include Glucophage and products which are further broken down into Glucophage SR, and Astra Zeneca's conversion of unbranded, company branded and branded patients from omeprazole to Nexium to protect as generics , this not only enables more granular analysis much as they could out of the business. of generics and original brand sales but also provides a meaningful basis for comparisons between different Overview: top five European markets countries Figure 2 . Based on the new classification, IMS estimates that Among the top five European markets, generics have the unprotected market which includes taken their firmest hold in the UK, where drug budgets, 33

Table of Contents for the Digital Edition of Pharmaceutical Executive Europe - September 2006

European Overview: Competition Time
Growth Strategies: Survival of the Fittest
Pharma Defence Strategies: Fighting Fire with Fire
Biogenerics: The Evolution of Biosimilars
Branding and Marketing: What's in a Name?
Branding and Marketing: A New World Order
Legal: Balancing Acts
Q&A: Champion of Industry
Q&A: Courting Consolidation
Market Outlook: Top Five Trends

Pharmaceutical Executive Europe - September 2006