Article | April 25, 2014

Zero Margin For Error: The New Reality For Generic Pharmaceutical Manufacturers

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Karen Bell

Generic pharmaceutical manufacturers are facing a business dichotomy: The overall market for generic drugs is growing but at a slower pace as the number of branded drugs entering the market is shrinking, diminishing opportunities to capitalize on expiring patents. Consequently manufacturers face numerous challenges that can significantly impact operational efficiencies and revenue growth. 

Shifting and compacting markets, disappearing branded drug queues, economic pressures, and an influx of manufacturers entering the generic market are all contributing to shrinking individual revenue streams, causing many companies to map out new avenues to grow market share. The challenges are formidable, as generic manufacturers seek new products, business models, and more efficient business practices to overcome revenue-threating risks.