Generics Industry Braces For New Wave Of Price Pressure

US Price Erosion Set For Double-Digits; Pricing And Costs Bite In Europe

 
• By David Wallace
  
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With pricing pressures already creeping up in recent years, 2022 is set to see the generics industry caught in the middle as prices are further squeezed while costs continue to rise. As major players prepare to announce their first-quarter financial results, Generics Bulletin looks at views from industry leaders on how these pressures are affecting their businesses, and how they can be expected to play out.

Dollar Sign in Vise Vice Price Squeeze
Industry faces pressure as prices are squeezed and costs rise • Source: Design Pics / Alamy Stock Photo

Low pricing has always been something of a double-edged sword for the generics industry. While offering cheaper alternatives to branded products and allowing expanded access to medicines are fundamental components of the off-patent sector’s value proposition, heavy price pressures can create an environment in which generics businesses operating on already thin margins are simply no longer sustainable. This can threaten to force certain products or suppliers out of the market entirely, reducing competition rather than enhancing it.

The generics industry – especially in the US where a limited number of buyers control much of the market –...

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