SMALL MOLECULE DRUG DISCOVERY MARKET ANALYSIS

Market Concentration and Competitive Landscape

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Increasing demand for generic drugs

The huge patient population suffering from chronic lifestyle disorders worldwide has put immense economic burden on healthcare systems of various countries. This factor, along with patent expiry of several blockbuster drugs, boosts demand for affordable generic versions. According to estimates, generics account for over 80% of total prescriptions filled in the U.S. currently. Major pharmaceutical markets like the U.S., key European nations, India, China are taking initiatives to promote generic drugs penetration through policies and investments. India has emerged as the global ‘pharmacy,’ owing to its large generics manufacturing capabilities and low cost of production. Meanwhile, companies in developed markets are also expanding generics portfolios and building affordable manufacturing capacities. The generic drug development process relies significantly on bioequivalence studies involving small molecule drugs to demonstrate therapeutic equivalence to reference listed drugs. Generic drugs offer up to 80% lower costs as compared to their branded counterparts. However, developing generic versions also pose technical challenges related to complex drug delivery mechanisms, multi-component formulations, and lack of readily available process information. This necessitates investments in enhancing reverse engineering capabilities, analytical techniques, and manufacturing infrastructure. Rising healthcare access and awareness about cost benefits of generics in emerging pharma hubs can stoke demand. Affordable small molecule generics also play a key role in easing treatment costs for a variety of chronic conditions globally.