Generic Manufacturers Try To Up Their Game As US Pressure Persists

With US generic drug price erosion running at double digits, 2017 is expected to be a challenging year for the generic drug sector. Manufacturers are looking increasingly to complex generics, injectables and biosimilars as an offset, but it's unclear if wins in those areas will be enough to bridge the growth divide.

The challenging US pricing environment for generic drugs appears poised to continue through 2017, presenting a long-lasting headache for manufacturers, which rely on the enormous US market to drive growth. While one of the biggest headwinds – FDA's effort to reduce the backlog of abbreviated new drug applications (ANDAs) – is normalizing, others like customer consolidation and smaller patent expiration opportunities will continue to put pressure on the business segment.

Generic drug manufacturers are looking increasingly to high barrier-to-entry products like sterile injectables, complex generics and biosimilars to drive growth,...

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