The segment's share of total industry sales reaches an unprecedented 36.6%
As the main means of access to medicines in the country, generics remain the fastest-growing segment in the Brazilian pharmaceutical industry. A survey conducted by the Brazilian Association of Generic Drug Manufacturers (PróGenéricos) reveals that sales of these products grew by 3.67% in the first six months of 2023, compared to the performance in the same period last year.
Between January and June 2023, 979.4 million units of generic drugs were sold, compared to 944.7 million in the same period last year. The data compiled by PróGenéricos was extracted from the database of IQVIA, an institute that is a global reference in monitoring industry indicators.
Industry sales of generic drugs to retailers totaled R$8.8 billion in the first half of this year, representing a 16.5% increase over the same period in 2022, when sales totaled R$7.5 billion.
“Generic drugs have continued to grow steadily since they first arrived on the market in 1999. And the segment continues to contribute to the modernization and expansion of the businesses of several companies that have expanded their operations, establishing a presence in innovative and more complex segments, such as biosimilars,” says Tiago de Moraes Vicente, executive president of PróGenéricos.
When comparing the performance of generics in relation to the total market during the period, it can be seen that generics grew by 3.7% and the rest of the industry declined by 0.65% in units sold. The difference between the performance of generics and other medicines is not unusual. Market indicators show that even in times of decline, generics grow because they are a more affordable alternative in pharmacies.
Patient seeks savings
The savings generated by generics for patients who opted to purchase products in this category reached R$19.6 billion between January and June this year, an increase of 14.15% compared to the first half of last year, which was R$17.2 billion.
“These figures validate and certify generics not only as a successful business venture, but also as a successful public policy for access,” Vicente points out. Since they arrived on the market in 1999, generics have already generated total savings of R$260 billion.
With prices at least 35% cheaper than reference products, according to the legislation that regulates the market, generics can cost up to 60% less, depending on commercial negotiations between industry and retailers.
Market share
The segment's market share continues to grow steadily. Generic drugs accounted for an unprecedented 36.6% of total sales in the sector in the first half of the year.
Even in a scenario of tight sales growth for the industry in recent months, the share of generics in the total drug market jumped three percentage points when we look at the segment's share in the same period of 2019, which was 33.6%.
When we look at the segment's share of specific markets such as chronic-use medications, the figures are even more surprising.
Generic drugs account for 74% of sales of hypertension medications, 80.7% of cholesterol products, and 27.6% of diabetes medications.
Outlook
For PróGenéricos, the sector is expected to close the year with growth of 7% to 8% in units sold compared to 2022 results. "If there is a more intense improvement in the economic environment than expected, we can advance even further," says Vicente.