The European Generic Pharmaceutical Market in Review: 2006 and Beyond

Abstract

Dramatic changes in pharmaceutical markets make it imperative for generic medicines producers to seek out, and work with governments to create the best conditions for developing, manufacturing and marketing their products. Similar to its involvement in the G10 Medicines process, the European Generic Medicines Association (EGA) is now actively engaged in the European Commission's follow-up initiative, the Pharmaceutical Forum. To bring substance to this debate, the EGA has recently completed two important studies of European generics markets and the governmental policies across Europe that effect them. These studies aim to determine the progress of initiatives to promote generic medicines by examining market shares and go on to suggest ways of increasing the up-take of these affordable medicines. The traditional instruments employed by governments to promote generics —reference-pricing systems, prescribing budgets, generic substitution, patient co-payments, information campaigns — can indeed be effective in stimulating generic up-take, but they must also stimulate competition on the markets. Pricing systems must encourage price competition and more affordable quality healthcare for patients. They must also be managed to guarantee the long-term sustainability of the European Union (EU)-based generic medicines industry so that it can compete effectively on EU and global markets and continue contributing to affordable healthcare in Europe.