Page 190 - CW E-Magazine (2-7-2024)

Special Report

Small-molecule generics sales continued to grow in 2023
Global generics market by region 2018-2023 contribution to Over the past fi ve years...
$Bn sales growth by region: %
+4% 100 Europe contributed almost ~30%
307 ROW
281 289 of generics market growth
262 266 29% US (EU4+UK=18%)
247 24% 25% 26%
23% 23% India
22% 9% 9% 4% US still has ~ 30% market
7% 8% 8% 10% China
7% 16% shrare, but it contributed <5%
17% 19% 18% 18% 17% 12% LATAM to global growth
Europe
20% 20% 20% 20% 21% 22% 17% Non-core markets including
CIS (11% CAGR). India (10%)
33% 31% 31% 30% 28% 27% 28% LATAM (9%) have seen
stronger growth
2018 2019 2020 2021 2022 2023 2018-2023
US Europe China LATAM ROW
Fig. 3: Small-Molecules Generics Market
Notes: Generics include unbranded and branded generics, Rx only, biosimilars are excluded;
Argentina and Turkey excluded due to Fx fl uctuations.
Bn is billion, LATAM is Latin America. ROW is rest of world. EU4 is France, Germany, Italy & Spain. CAGR is compound annual growth rate.
Source: IQVIA MIDAS Q4 2023
tains more than 200 active substances of supply by making demand more predict- Fine Chemicals Group (EFCG), supports
medicines considered critical for health- able, encouraging diversifi cation, and potential policy moves to advance fi ne
care systems across the EU/European boosting manufacturing in the EU. chemical manufacturing in the EU.
Economic Area, for which continuity of
supply is a priority and for which short- Those efforts will also be part of Cefi c’s EFCG issued a set of recom-
ages should be avoided. The list con- discussions in the Alliance, which will mendations last November (November
tains active substances of innovator and help the European Commission to iden- 2023), which included fostering sup-
generic drugs covering a wide range of tify what it terms as “pipeline investment portive legislative policies for EU API
therapeutic areas and includes vaccines projects,” which could benefi t from EU manufacturers that emphasized sustain-
and medicines for rare diseases. It refl ects and national funding to strengthen manu- able growth and reshoring initiatives
the outcome of a review of 600 active facturing in the EU. The Alliance will while investing in innovation and shift-
substances taken from six national lists of also look at how market incentives, such ing procurement focus on supply security
critical medicines. The goal is update that as capacity reservation contracts and joint and social-environmental standards. In
list on an annual basis. procurement, can be used to enhance making those recommendations, EFCG
security of supply of critical medicines. pointed to the continued decline of Euro-
The European Commission carried In addition, the Alliance is taking a pean-based API production with respect
out an analysis of supply-chain vulner- holistic view of the supply chain, and to the supply of critical medicines. From
abilities for a fi rst tranche of 11 critical its members will seek to identify new a global production share of 53% in 2000,
medicines on the Union list, published synergies to work with each other more the EU’s share of API production in 2020
in April 2024. The outcome of this work effectively, including creating new part- fell to 25% due to increased competition
will inform the scope of the mandate nerships. Given the global nature of the from lower-cost countries and EU pricing
of the Critical Medicines Alliance. In supply chain, these new partnerships and procurement policies not favourable
addition, the European Commission will could bring the diversifi cation of the to EU-based domestic manufacturing,
proceed with evaluating the remaining supply chain of critical medicines. according to information from EFCG.
medicines in the Union list. It will then
recommend priority actions for the near The European Chemical Industry REFERENCE
future and propose new tools to address Council (Cefi c), which represents EU 1. P. Van Arnum, “Global Pharma Indus-
the challenges it has identifi ed. In parti- chemical manufacturers, is a member try Outlook: The Ups and Downs &
cular, the recommendations will focus of the Critical Medicines Alliances, and Projections Near Term,” DCAT Value
on mitigating structural risks, reinforcing through its sector group, the European Chain Insights, May 30, 2024.

190 Chemical Weekly July 2, 2024

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