Pharmas will be forced into generic-drug strategy
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Thinkpad In past columns, I have written about the important impact that
generic pharmaceutical drugs are having on the pharmaceutical
industry around the world. Their rise and growth spurs Big Pharma
to invest heavily in new patented drugs.
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Microsoft With 45 million Americans not having any kind of medical health
insurance in the United States and the doors to cheaper medicines
from Canada being rapidly shut by U.S. pharmaceutical companies,
the need for cheaper medicines is becoming more and more apparent
in the wealthiest society of the world.
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Laptop Computers In those less-fortunate countries around the world, it is
imperative. Mondays Wall Street Journal chronicles on its
front page the rise of a chain of pharmacies in Latin America that
are focused on promoting generic drugs. According to the article,
generic drugs are a worldwide trend to be reckoned with:
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Though the U.S. generic trend seems to be on the low side of
market penetration, this figure represents only the dollar value
sales of the market. If you were to look at actual unit sales of
generics, the penetration in the U.S. would most likely be at least
50 percent and obviously higher in other parts of the world.
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Desktop Computer In India (the other extreme) where intellectual property law is
just being initiated for the first time, there is likely to be a
decrease in generic market growth as more and more Indian companies
succumb to filing patents as part of the globalization of Indian
pharmaceutical companies (particularly if they want to play in the
U.S. market).
Notebooks The key challenge is not in the existing type of generic
products based on traditional small-molecule drugs (which are
easily retro-engineered by brilliant Indian chemists) but the
potential approval and commercialization of biogenerics (the
large-molecule biotech drugs represented by classes of drugs known
as proteins and peptides, which are more difficult to copy).
Lenovo The approval process for such biotech drugs (which are the
costliest in the market) in the U.S. is the target of FDA
deliberations. The FDA, by the way, is currently trying to render
more drugs accessible to American consumers and patients. These are
heavily opposed by U.S. pharmaceutical and biotech industry
associations. Sooner or later, biogenerics will be approved.
Hard Drive Only one major pharmaceutical company the Swiss giant Novartis
has positioned itself strongly in the worldwide generic market and
the development of new drugs. Most American pharmaceutical
companies have sold off their generic businesses or given them
short shrift. The growth of generics is an economic imperative to
the millions of people (if not billions) who cant afford costly
medicines.
Travelstar A patient tradeoff with generics is absolute product quality (in
medical terms, this is known as bioequivalency and
bioavailability). Though its not always the same as the original
drug, this gap is closing as generic companies are investing more
in improving these features of their products and as the FDA
mandates more testing.
Gateway The Wall Street Journal article features the growth of a
Mexican chain of pharmacies that are focusing on generic drugs and
have expanded beyond the borders into nearby Central America and as
far away as Argentina. Mexicos generic drug market is the ninth
largest in the world.
Laptop Parts With the large Mexican population in the U.S., it is conceivable
that the U.S. itself could be the target of this chain of
pharmacies in the near future (this is my conjecture).
Software As generics are here to stay, more and more pharmaceutical and
biotech companies will be forced to either incorporate a generic
strategy into their commercialization plans or develop and launch
more patented and innovative drugs quickly. The latter activity is
difficult given the uncertainties of drug development, the length
of development time and the FDA approval process.
Hard Drives As mentioned in prior columns, Midwest companies such as
American Pharmaceutical Partners and Morton Grove Pharmaceuticals
are aggressively and successfully pursuing generic niches that
include the use of drug delivery. See you next week!
Electronics Michael S. Rosen is the chairman and CEO of Immune Cell Therapy,
a new start-up out of the University of Illinois at Chicago
developing cancer vaccines. Rosen is also a founder and board
member at the Illinois Biotechnology Industry Organization (IBIO).
He can be reached at rosenmichaels@aol.com.
This article has been syndicated on the Wisconsin Technology
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