Based on generics use, the seven major markets may be divided into mature (the US, Germany and the UK) and immature (France, Italy, Spain and Japan) markets, both of which present different challenges, making the fast-growing, high-value emerging markets a tantalizing prospect. In addition to market expansion, acquisition and closer innovator ties represent key strategies for industry growth.

The global generics market is growing, however it will be the immature and emerging generics markets which will increasingly drive growth, as competitive pressures in the more mature markets intensify, and make sustaining revenue growth more difficult here.

Consolidation continues to be a crucial strategy for generics industry growth, with recent M&A activity having reinforced the position of some companies, whilst bolstering the ranking of others. The magnitude of acquisitions has also increased, and given current economic conditions, such high price-tags may not be sustainable.

The increasingly close relationship between generics and branded companiesfeared by regulators to delay generics market entry in some caseshas reached an extreme in the recent acquisitions of generics companies by innovators, a response to the pressures the latter are under.

• Identify the issues are impacting on the generics industry in the seven major markets.
• Understand why the emerging markets are increasingly a target for generics companies.
• Identify the key strategic trends for the generics industry in the future.