Pharma firms eye generic drugs
While Cipla and Alkem already have a presence in the trade generic medicines segment, Dr Reddy’s Laboratories has become the latest firm to enter the space, this report says.
| Aug 3, 2023, 11:15 IST
Pharmaceutical companies in India are entering the trade generic medicines space to boost their businesses, reports The Economic Times.
While Cipla and Alkem already have a presence in this segment, Dr Reddy’s Laboratories has become the latest firm to enter the space, the report says. Other major players like Mankind, Glenmark, Torrent Pharma, and Abbott are also planning to foray into trade generics.
What are trade generics and why are companies making a push towards them? These are branded medicines that are not promoted to doctors, but sold directly through retailers and distributors, the report further says, with many becoming over-the-counter brands. The segment in India is growing at 14%-16% every year and has a market share of 20% by volume and 5%-6% by value, says data from analytics firm IQVIA.
While Umang Vohra, Cipla’s MD and Global CEO, says that these medicines form a critical part of the company’s business. However, Sandeep Singh, MD of Alkem Laboratories, says that while firms are making a pivot towards the segment, it is a low gross margin business.
The government is also focusing on trade generics with its Janaushadhi scheme but has recommended all state medical councils to have them in prescriptions and conduct prescription audits frequently across public health facilities, the report adds.
While Cipla and Alkem already have a presence in this segment, Dr Reddy’s Laboratories has become the latest firm to enter the space, the report says. Other major players like Mankind, Glenmark, Torrent Pharma, and Abbott are also planning to foray into trade generics.
What are trade generics and why are companies making a push towards them? These are branded medicines that are not promoted to doctors, but sold directly through retailers and distributors, the report further says, with many becoming over-the-counter brands. The segment in India is growing at 14%-16% every year and has a market share of 20% by volume and 5%-6% by value, says data from analytics firm IQVIA.
While Umang Vohra, Cipla’s MD and Global CEO, says that these medicines form a critical part of the company’s business. However, Sandeep Singh, MD of Alkem Laboratories, says that while firms are making a pivot towards the segment, it is a low gross margin business.
The government is also focusing on trade generics with its Janaushadhi scheme but has recommended all state medical councils to have them in prescriptions and conduct prescription audits frequently across public health facilities, the report adds.