Generic versus Branded Pharmaceutical Strategic Considerations: An Irish Focus with Global Perspective
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Generic Versus Branded Pharmaceutical Strategic Considerations: An Irish Focus With Global Perspective
Koro Doly, M I A Director. Regulatory Affairs, Phannont Ltd
Key Words Generic: Generics market; Proprietary medications: Generic substitution: Strategy Correspondence Address Kara Daly-Andr&. Escola Pia 94-A, 08201 Sabadell, Spain (email: [email protected]).
This article seeks to explore strategic considemtions in the competition between generic and bmnded pharma drugs in Ireland. In a global environment, with trends in cost-saving substitution mod& andgrowingconsumerawareness, Ireland has remained a high-price under-genericized ma&. Zrish government initiatives tc+ ward contrd of drug expenses are inptenced by factors such as quality, reliability of suppl~and public perception and concerns. Other elements
INTRODUCTION Medications that are licensed using either the generic name or an alternative proprietary name (branded generic or branded medications) are increasing in market share in Ireland. Currently there is a low level of generic penetration with somewhere between 70% and 90% of prescriptions specifying a brand (if even only a branded generic) (1). Most countries are seeking to match the levels of penetration as seen in markets such as the Netherlands and Germany, where penetration rates are 40-50% (2).The market value of generics in Ireland is running at approximately 7% (2).This is a contrast to many central and eastern European countries where generics make up as much as 70% of all medicines prescribed in terms of volume, while in value terms generics represent only 30% of pharmaceutical expenditure (Figure 1)(2). The underdeveloped Irish generics market has skewed the portfolio of many companies in favor of older brands, with a loyal medical profession and consumers alike. Where the prescription is generic, the drug dispensed is influenced by the profit margin, stock levels, other incentives on offer, and patient preference. By 2011, it is expected that Ireland will be ex-
aflecting market trends are changes in regulatory requirements, number of competitors, and health professionals' preferences. These van'ables, among others, drive the necessity for strong strategy &dim to be undertaken the bmnded and generics industry alike. Indeed, such strategies may incorpomte acthities such as lobbying, negotiation, patent protection, bmnd defense, life cycle management, consohdation, and driving consumer awareness.
posed to increased generic competition. Sourcing, regulatory access, and the current undergenericized status of the Irish market provide positive opportunities for generics. Indeed, companies like Rowex (the Irish pharmaceutical division of Rowa Pharmaceuticals), Pinewood, Clonmel, and Gerard Laboratories through launches of over-the-counter (OTC) and prescription products as part of their branded generic range are already making themselves at home. Chains such as Boots and Tesco are also driving their own branded generics. Pharmaceutical companies are seeking to manage associated risk to
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