Quintiles IMS Report shows no sign of slow down in Generic Pharma

Last week, there was a brand new report released by the Quintiles IMS Institute on behalf of the Generic Pharmaceutical Association (GPhA), detailing the latest figures relating to the generic drugs space. The report, ‘2016 Generic Drug Savings and Access in the United States’, underlines the continued importance of the role of generic drugs in ensuring that patients are able to access treatment at an affordable cost. The report reveals that 3.9 billion of the total 4.4 billion prescriptions dispensed in the United States are for generic pharmaceuticals. While generics represent 89% of prescriptions dispensed, they account for only 27% of total medicine spending.

The sheer volume of prescriptions continues to make this an attractive area for pharmaceutical organizations of all sizes across the globe and is driving significant market activity. In the most recent news this week, Vanda Pharmaceuticals announced a license agreement with Taro. The two have been locked in patent litigation involving Taro’s generic version of Vanda’s Fanapt (iloperidone). Under the new agreement, Vanda has granted Taro a non-exclusive license to manufacture and commercialize Fanapt. The deal comes into effect from November 2027 and paves the way for a full settlement regarding all claims that are the subject of the litigation.

In other news, just two days ago, it was reported that the Indian firm Sun Pharma has now launched its US generic versions of the drugs Benicar, Benicar HCT, Azor and Tribenzor, all of which are used in treatment of high blood pressure. Sun Pharma has reached a distribution and supply agreement with original producers Daiichi Sankyo, a global pharmaceutical company with its corporate origin in Japan. According to a company release, Sun Pharma has won “exclusive rights to distribute these tablets in the US for a predetermined period.”

And from the investment circuit, Timothy McIntosh released a positive investment thesis yesterday for Novartis based on peak patent exposure. Generic drugs create huge value for an organization - in the case of Novartis, the Sandoz division is responsible for generic pharmaceuticals, which themselves account for 16% of sales.  

The value of this market prompted us to explore generic pharmaceuticals from an IP perspective in a recent PatSnap white paper. Aside from being able to evaluate the competitive landscape, IP analysis also provides the opportunity to identify patents that are close to expiry and therefore could represent new potential gold mines of the future. We explore methods for:

  1. Finding and categorising relevant expiring patents
  2. Prioritising patents for conducting more in-depth research, based on their importance to the organization
  3. Assessing the opportunity presented by each relevant expiring patent and using the findings to build a risk report

Read the full white paper here:

Exploiting Expiring Drug Patents Download the white paper