Waiting for Cheap Drugs?
Cheap drugs are coming.
According to a report by Datamonitor today, drugs with combined annual sales of $160 billion will come off patent in the next ten years. Total global drug sales are around $500 billion.
"Within the next five years an estimated $80 billion in 2005 product sales will be exposed to generic competition, while a further $77 billion will be subject to generic incursion between 2011 and 2015," Datamonitor pharmaceutical lead analyst Joanna Chertkow said.
That also means a bright future for generic drug makers, such as Israel's Teva Pharmaceutical Industries Ltd and U.S.-based firms Watson Pharmaceuticals Inc. and Barr Pharmaceuticals Inc., Iceland's Actavis, and Indian group's Ranbaxy Laboratories Ltd and Dr. Reddy's Laboratories Ltd.
If you go shopping on the stock market, you don't want to buy big pharma, you want to buy generic pharma.
You heard it here first.