openPR Logo
Press release

Datamonitor: Authorized generics agreements – last ditch effort on part of branded pharma on reports-research.com

08-05-2009 06:13 PM CET | Health & Medicine

Press release from: dynamic technologies Gmbh, Köln, Germany

Datamonitor: Authorized generics agreements – last ditch

As pay-for-delay agreements look to be on the way out of the pharmaceutical industry in Europe and the US, a new report by independent market analyst Datamonitor forecasts that the number of authorized generics (AG) agreements will grow, in tandem with the increasing convergence between branded and generics companies. Competitive pressures in the US and Europe have radically altered the brand-generic dynamic, to the extent that the line between the two is beginning to blur, with AG agreements one outcome of these developments. The growing trend for branded companies – notably GlaxoSmithKline, Sanofi-Aventis, and Pfizer, to bolster their generics presence also means that the strategy of fielding own-generics will gain traction.

Authorized generics in Europe and the US – same drivers, different impacts

Authorized generic agreements, the strategy by which branded companies market generic versions of their own branded drugs, provide innovators with a means of capitalizing upon the generic erosion of their own brands, thereby maximizing revenue streams from a mature product. Authorized generics are therefore something of a very late-stage drug lifecycle management strategy for branded pharma. The generics industry is more divided on the issue. For those companies with the wherewithal to aggressively challenge patents and get to market early, AGs are a considerable irritant. However, for smaller players these agreements represent a valuable competitive advantage, and this is more true in the US than Europe.

Due to their sale during the 180-day period of market exclusivity awarded to first-to-file generics companies in the US, AGs are considerably more potent in the American market. The increasing use of AGs as a ‘bargaining chip’ in reverse payment agreements in the US (but not Europe) underlines their greater impact. Indeed, there have been calls from some in the generics industry in the US for the so-called ‘Hatch-Waxman loop-hole’ to be closed to prevent AG sale during the 180-day market exclusivity period says Datamonitor healthcare strategy analyst Pam Narang. “Detractors insist that AG sale at this time is anticompetitive and a deterrent to early generics entry. However, given the accelerated price erosion that characterizes AG sale during the 180-days of market exclusivity, an outright ban is unlikely in the short-term,” she says.

Own-authorized generics offer the best option for branded pharma

All AG agreements involve a branded drug- and generics partner. In the event that the branded company has a generics subsidiary the identity of the generics partner is often a foregone conclusion. Such ‘own-AGs’ allow the branded company to retain all revenues derived from AG sales rather than just a fraction, as is the case when the generics partner is external. Therefore, own-AGs represent the best-case scenario for branded companies looking to market an AG, Ms. Narang says. “This is supported by Datamonitor’s analysis, which found that the proportion of own-AGs was over-represented in the dataset under investigation.”

Datamonitor analyzed 40 AG launches that occurred in the US between 2004 and 2008. Although only a third of the 14 branded companies under investigation had the opportunity to market an own-AG, these constituted 45% of all AG launches. Moreover, not only was Pfizer the most frequent branded partner involved in own-AG launches, but the company was also the most common branded partner in all AG agreements analyzed, involved in 30% of all AG launches.

The most lucrative therapy classes were the most popular targets for authorized generic launch

Authorized generic launches for branded drugs belonging to the cardiovascular (CVD), infectious disease (ID), and central nervous system (CNS) disorder classes were collectively responsible for most (60%) of the AG launches under analysis. Unsurprisingly, these three therapy areas represent the top three classes in terms of pre-generic quarterly sales in the US, totaling $6 billion in all. This supports the idea that companies will defend their most lucrative brands – the blockbusters – with the greatest vigor, with AG launch forming a part of this arsenal.

The average peak AG market share for these three disease classes ranged from 43% for CNS brands to 50% for ID brands. While AGs for CVD and ID brands lost considerable market share in the two years post-launch, those for CNS drugs dropped just one percent on average. The relative stability of CNS AG market share is due to the limited number of generic competitors entering the market for a number of brands within this group, Ms. Narang says. “Indeed the extent to which an AG is able to capture and retain generic market share is often correlated with the number of bone fide generic entrants with which it must compete.”

Datamonitor found that the highest value brands were associated with the greatest number of generic entrants following loss of patent protection. Brands with sales in excess of $600 million in the quarter prior to generic entry experienced an average of 14 and 19 competitors at one and two years post generics launch, respectively (not including the AG). It is therefore unsurprising that the average proportion of the generics market captured by AGs for this group of drugs was one of the lowest observed, at only 36%, when products were grouped by value.

Authorized generics are here to stay, for now

A slowdown in the number of new drugs reaching the market coupled to delays to generics entry, has spurred regulators in both Europe and the US to look more closely at the way Pharma does business. While the Federal Trade Commission (FTC) has ramped up efforts to police pay for delay deals more vigorously in the US, the European Commission’s long awaited antitrust report also highlights potential collusion between branded and generics companies, Ms. Narang says. “Although the issue of AGs has come under scrutiny across the board, there have yet to be any definitive conclusions regarding their anticompetitive nature."

“Moreover, the FTC’s recent AG report actually implies that AGs are pro-consumer, due to their impact on generic price. Notwithstanding the lobbying efforts of some of the larger generics companies, therefore, AGs look to remain a fixture in the battle between branded and generics pharma in the short-term,” she says.

The Report: Generics Series: Authorized Generics Analysis – Stemming the generics tide

While the benefits of authorized generics to the branded industry are clearly apparent, the attitude of the generics industry is determined by individual company strategy. For those generics players that aggressively challenge patents, authorized generics are a threat to revenues, while for other smaller companies, authorized generics represent an opportunity to get to market quickly and easily.

Research and analysis highlights

Given the benefits associated with own authorized generics, it is unsurprising that these dominated the data-set under investigation, with the Pfizer-Greenstone authorized generic combination by far the most frequent.
The authorized generic launched at a greater discount to the branded drug than the conventional generic, in 65% of agreements under analysis, reflecting the higher margins available to the authorized generics company which potentially neither developed, manufactured, or obtained approval to market the drug.
The greatest number of generic entrants was associated with the highest value branded products (with pre-generic quarterly sales in excess of $600m) in the data-set under analysis, with this group showing an average of 14 and 19 competitors at 1 and 2 years post generics launch.

Scope of this research

* An overview of the authorized generics landscape, including drivers and resistors for both branded and generics players.
* An insight into which branded and generics companies entered into authorized generics agreements in the US between 2004 and 2008.
* Analysis of the extent of authorized generic market share capture during 2 years following launch, by brand value, therapeutic class, and dosage form.
* An overview into what the future holds for authorized generics, in the US and Europe.

To purchase this Datamonitor report, Generics Series: Authorized Generics Analysis – Stemming the generics tide, please contact:

reports-research.com
c/o dynamic technologies GmbH

Manuel Bravo Sanchez (CEO)

info@reports-research.com
or
Tel ++49 (0)221 690 688 55
Fax ++49 (0)221 690 688 56

More information on this report:
Pages: 80
List price: $5,700
Published: 28 Jul 2009

Datamonitor: More market data and market reports:
http://www.reports-research.com/studien/datamonitor-m-29.html

markt-studie.de, founded in 2002 has emerged as a leading online portal for market surveys and market research in German speaking areas. Four years later the English language portal reports-research.com was introduced due to the extraordinary success of the portal. Again one year later estudio-mercado.es - the Spanish spoken portal - was founded. The objective of the three portals is to competently and efficiently support consultants and decision makers in management, sales and marketing in the search for worldwide market research. Prospective buyers can look into more than 60,000 market surveys from more than 200 international publishers, current market data for more than 6,000 branches worldwide, 10,000 company profiles as well as a free-of-charge research and recommendation service for individual market research.

reports-research.com
c/o dynamic technologies GmbH
Siegburger Str. 233
50679 Köln
Germany

Manuel Bravo Sanchez (CEO)

info@reports-research.com
or
Tel ++49 (0)221 690 688 55
Fax ++49 (0)221 690 688 56

This release was published on openPR.

Permanent link to this press release:

Copy
Please set a link in the press area of your homepage to this press release on openPR. openPR disclaims liability for any content contained in this release.

You can edit or delete your press release Datamonitor: Authorized generics agreements – last ditch effort on part of branded pharma on reports-research.com here

News-ID: 91064 • Views:

More Releases from dynamic technologies Gmbh, Köln, Germany

Canadean: New Zealand - The Future of Foodservice to 2016
Canadean: New Zealand - The Future of Foodservice to 2016
The New Zealand foodservice market recorded a CAGR of 1.43% during the review period. Per capita sales increased at a review period CAGR of 0.38%. In 2011, the profit sector contributed 92.1% to the country’s total foodservice sales and posted a per capital sales CAGR of 0.33%. Growth in the profit sector is attributable to the growth in the restaurant channel which grew by a CAGR of 1.56%. In
yStats.com: South Korea B2C E-Commerce Report 2011 published on reports-research.com
yStats.com: South Korea B2C E-Commerce Report 2011 published on reports-research …
The latest South Korea B2C E-Commerce Report 2011, compiled by Hamburg-based market research firm yStats.com features important B2C E-Commerce facts and figures on South Korea. In addition to revenue figures, market shares and customers, the report also covers general online use, the latest trends and major competitors. In 2010, the number of internet users in South Korea rose to more than 35 million. Growth rates were very low in the last
yStats.com: Turkey Top 100 E-Commerce Players 2011 published on reports-research.com
yStats.com: Turkey Top 100 E-Commerce Players 2011 published on reports-research …
The latest and highly informative Turkey Top 100 E-Commerce Players 2011 ranking, compiled by the Hamburg-based market research firm yStats com, presents the 100 most successful players on the Turkish E-Commerce market. Turkey’s top 100 E-Commerce players have been ranked based on local unique visitor numbers from September 2011. The yStats com ranking highlights important details about competitors in the Turkish E-Commerce sector, shareholders, business models, product ranges, local and
GlobalData: Wind Power - Global Market Size, Turbine Market Share, Installation Prices, Regulations and Investment Analysis to 2020
GlobalData: Wind Power - Global Market Size, Turbine Market Share, Installation …
Wind Power - Global Market Size, Turbine Market Share, Installation Prices, Regulations and Investment Analysis to 2020 is the latest report from GlobalData, the industry analysis specialists that offer comprehensive information and understanding of the Global Wind Power market. The research provides an understanding of the technology, key drivers and challenges in the global wind power market. It also provides historical and forecast data to 2020 for installed capacity and power

All 5 Releases


More Releases for AGs

Frameless Doors Market | AGS Systems, Alufire, Avanti Systems, Cocif
The global frameless doors market report is a comprehensive report that provides a detailed analysis of the current status and future trends of the frameless doors market worldwide. This report provides valuable information to industry stakeholders by offering an in-depth perspective on market dynamics, competitive landscape, growth opportunities, and key challenges faced by industry participants. From the perspective of market dynamics, this report explores the factors driving the growth of the
Projection Keyboard market: Market Indicators Showing Positive Outlook | AGS, la …
"The global Projection Keyboard Market is carefully researched in the report while largely concentrating on top players and their business tactics, geographical expansion, market segments, competitive landscape, manufacturing, and pricing and cost structures. Each section of the research study is specially prepared to explore key aspects of the global Projection Keyboard Market. For instance, the market dynamics section digs deep into the drivers, restraints, trends, and opportunities of the global
AGS continues to thwart cyber threats with CloudSEK’s XVigil
AGS Transact Technologies ramps up cyber security measures with CloudSEK’s XVigil, to secure soaring digital transactions. Bengaluru, Mumbai – 25 June 2020 –India’s leading providers of end-to-end cash and digital payment solutions and automation technology solutions, AGS Transact Technologies Limited (AGSTTL), has been harnessing CloudSEK’s Artificial Intelligence (Al) powered digital risk monitoring platform XVigil since July 2019. And given that more and more Indians are adopting online payment options, AGS has
Global Projection Keyboard Market 2019 - AGS, lamastonl, Celluon, Brookstone
A projection keyboard is a form of computer input device whereby the image of a virtual keyboard is projected onto a surface: when a user touches the surface covered by an image of a key, the device records the corresponding keystroke. Some connect to Bluetooth devices, including many of the latest smartphone, tablet, and mini-PC devices with Android, iOS or Windows platform. In 2019, the market size of Projection Keyboard is
Global Medicinal Oscillator Market 2017 - TERUMO, WEGO, BBRAUN, BD, AGS
The report studies Medicinal Oscillator in Global market Professional Survey 2017 : Size, Share, Trends, Industry Growth, Opportunity, Application, Production, Segmentation, Cost Structure, Company Profile, Product Picture and Specifications during the Forecast period by 2022 The Global Medicinal Oscillator Market Industry report gives a comprehensive account of the Global Medicinal Oscillator Market. Details such as the size, key players, segmentation, SWOT analysis, most influential trends, and business environment of the market
AGS showcases Intelligent Cash Deposit machine to Oil industry
MUMBAI, 22nd February, 2012: Addressing the tricky issue of cash management of busy petrol pumps that are vulnerable to thefts diverse technology solutions provider AGS Transact Technologies has showcased its unique product Intelligent Cash Deposit’ (iCD) at PETROLWORLD APAC Business Forum 2012 at The Lalit, Canacona Goa. AGS demonstrated how the product facilitates deposit large amounts of cash at petrol pumps and other retail locations, without any hassle.