Generic Drug Market in Canada

SUMMARY

Canada represents one of the largest markets for pharmaceuticals in the world, with a huge potential for generics. Generics in 2007 accounted for more then 46% prescriptions and 19% sales out of the total pharmaceutical market. The market is currently being driven by several factors, such as patent expiry of several blockbuster drugs, lower costs, cost containment measures by the government, and rapidly ageing population, according to "Generic Drug Market in Canada" - a market research report that provides an exhaustive analysis on the generic market in Canada.

The report thoroughly evaluates the factors that distinguish Canada from all other generic markets both in positive and negative ways. A major factor that differentiates the Canadian generic market from the US and most European markets is the comparatively high price of generics and lower price erosion. This allows manufacturers to fetch better margins from their drugs, and is a major reason which is attracting foreign players to enter this market.

Currently, drugs against chronic diseases occupy most of the pharmaceutical market, with cardiovascular drugs holding the top spot. However, strong growth is expected in other chronic segments also, particularly in cancer and diabetes.

Although the market has huge potential, growth can be significantly hampered by recent government regulations and various other challenges. However, the low cost of generics, coupled with billion dollar drug patent expiries, is expected to enable the generic market to continue its double-digit growth in the next five years.

Key Findings

• The penetration of generics is rapidly increasing in the Canadian pharmaceutical market, with generics expected to account for nearly 26% of the entire pharmaceutical sales by 2012.
• Apotex has been the leader of the Canadian generic market, controlling around 34% of the market in 2006.
• Nearly 5 Million people in Canada will be above 65 years by 2011, increasing the demand for drugs, specifically those for chronic diseases.
• Generics substitution is preferred by pharmacists as they give better returns than branded drugs.
• The top four generic companies presently control more then 70% of the generic market, but the market is expected to undergo more fragmentation in future.
• Projected growth of generics at a CAGR of 14% during 2007-2012 will surpass that of pharmaceutical market at a CAGR 7.6% during the same period.

Key Issues & Facts Analyzed

• Evaluation of past, current and future market trends.
• Discussion about the size and growth of the market.
• Study of various distribution channels prevailing in the market.
• Analysis of healthcare indicators.
• Future prospects of the generic market.
• Profile discussion of key players in this market.
• Analysis of various challenges and opportunities for the market.

Key Players Analyzed

This section provides the overview, key facts, and financial information of prominent players in the Canadian generic market, including Teva Pharmaceutical Industries Limited, Apotex Inc, Ratiopharm GmBH, Pharmascience Inc., etc.

Research Methodology Used

Information Sources

Information has been sourced from books, newspapers, trade journals, and white papers, industry portals, government agencies, trade associations, monitoring industry news and developments, and through access to over 3000 paid databases.

Analysis Methods

The analysis methods include ratio analysis, historical trend analysis, linear regression analysis using software tools, judgmental forecasting, and cause and effect analysis.

TABLE OF CONTENTS

1. Analyst View

2. Canadian Pharmaceutical Market

• 2.1 Market Size & Growth
  • 2.1.1 Prescriptions
  • 2.1.2 Sales
• 2.2 Key Therapy Areas
• 2.3 Branded & Generic Drugs
• 2.4 Sources of Drug Payment
• 2.5 Key Players
  • 2.5.1 Prescriptions
  • 2.5.2 Sales
• 2.6 Top Selling Drugs
  • 2.6.1 Prescriptions
  • 2.6.2 Sales

3. Canadian Generic Market

• 3.1 Market Size & Growth
  • 3.1.1 Prescriptions
  • 3.1.2 Sales
• 3.2 Key Players
  • 3.2.1 Prescriptions
  • 3.2.2 Sales
• 3.3 Market Segmentation
  • 3.3.1 Distribution Channels
    • 3.3.1.1 Retail Pharmacies
      • 3.3.1.1.1 Sales
      • 3.3.1.1.2 Key Players
    • 3.3.1.2 Hospital Pharmacies
      • 3.3.1.2.1 Sales
      • 3.3.1.2.2 Key Players
  • 3.3.2 Authorized & Independent Generics
  • 3.3.3 Province/Territory
    • 3.3.3.1 Drug Consumption
    • 3.3.3.2 Prescriptions
    • 3.3.3.3 Sales
• 3.4 Generic Approval Process
  • 3.4.1 Abbreviated New Drug Submission
  • 3.4.2 Notice of Allegation

4. Industry Analysis

• 4.1 Market Drivers
  • 4.1.1 Huge Cost Savings
  • 4.1.2 Favorable Political Environment
  • 4.1.3 Patent Expirations
  • 4.1.4 Ageing Population
  • 4.1.5 High Returns for Pharmacists
• 4.2 Opportunity Areas
  • 4.2.1 Cardiovascular Drugs
  • 4.2.2 Cancer Drugs
  • 4.2.3 Psychotherapeutics
  • 4.2.4 Antidiabetics
  • 4.2.5 Drug Packaging & Delivery Market
• 4.3 Restraining Factors
  • 4.3.1 Extension of Data Exclusivity
  • 4.3.2 Export Restrictions
  • 4.3.3 Evergreening of Drug Patents
  • 4.3.4 Authorized Generics
• 4.4 Future Outlook (2008-2012)
  • 4.4.1 Driving & Restraining Forces
  • 4.4.2 Future Scenario (2008-2012)

5. Supporting Databases

• 5.1 Macroeconomic Indicators
• 5.2 Population Profile
• 5.3 Age Profile
• 5.4 Healthcare Spending & Infrastructure

6. Key Player Profiles

• 6.1 Apotex Inc
• 6.2 Mylan Laboratories Inc
• 6.3 Teva Pharmaceutical Industries Limited
• 6.4 Ratiopharm GmbH
• 6.5 Sandoz Inc
• 6.6 Pharmascience Inc.

List of Figures:

• Figure 2-1: Canada - Prescriptions Dispensed* in Pharmaceutical Market (in ‘000), 2001-2007E
• Figure 2-2: Canada - Pharmaceutical Sales* (in Billion CA$), 2001-2007E
• Figure 2-3: Canada - Pharmaceutical Purchases* by Retail & Hospital Pharmacies (in Billion CA$), 2001-2007E
• Figure 2-4: Canada - Deaths by Various Causes (%), 2005-2007E
• Figure 2-5: Canada - Share of Generic & Branded Drug by Prescription* (%), 2007E
• Figure 2-6: Canada - Share of Generic & Branded Drug by Sales (%), 2007E
• Figure 2-7: Canada - Drug Financing by Source (%), 2006
• Figure 3-1: Canada - Prescriptions Dispensed* in Branded Drug Market (in ‘000), 2001-2007E
• Figure 3-2: Canada - Prescriptions Dispensed* in Generic Drug Market (in ‘000), 2001-2007E
• Figure 3-3: Canada - Share of Generic & Branded Drug by Prescription (%), 2001-2007E
• Figure 3-4: Canada - Generic Drug Sales (in Billion CA$), 2001-2007E
• Figure 3-5: Canada - Branded Drug Sales (in Billion CA$), 2001-2007E
• Figure 3-6: Canada - Share of Generic & Branded Drug by Sales (%), 2001-2007E
• Figure 3-7: Canada - Relation between Brand Sales & Number of Generic Entrants
• Figure 3-8: Canada - Branded Drug Sales through Retail Pharmacies (in Billion CA$), 2004-2007E
• Figure 3-9: Canada - Generic Drug Sales through Retail Pharmacies (in Billion CA$), 2004-2007E
• Figure 3-10: Canada - Share of Generic & Branded Drug Sales through Retail Pharmacies (%), 2004-2007E
• Figure 3-11: Canada - Branded Drug Sales through Hospital Pharmacies (in Billion CA$), 2004-2007E
• Figure 3-12: Canada - Generic Drug Sales through Hospital Pharmacies (in Billion CA$), 2004-2007E
• Figure 3-13: Canada - Share of Generic & Branded Drug Sales through Hospital Pharmacies (%), 2004-2007E
• Figure 3-14: Canada - Share of Independent Generic & Authorized Generic Prescriptions (%), 2001-2007E
• Figure 4-1: Canada - Average Cost of Branded & Generic Drug (in CA$), 2001-2006
• Figure 4-2: Canada - Population above 65 Years of Age (in Million), 2001-2007E
• Figure 4-3: Canada - Relative Per Capita Spending on Drug by Age Group
• Figure 4-4: Canada - Cardiovascular Drug Market* (in Billion CA$), 2005-2007E & 2012F
• Figure 4-5: Canada - Antineoplastics Market* (in Million CA$), 2005**, 2006** & 2012F**
• Figure 4-6: Canada - Psychotherapeutics Market* (in Billion CA$), 2005-2007E & 2012F
• Figure 4-7: Canada - Number of Diabetes Patients in Age Group 20-79 Years (in ‘000), 2003, 2007E & 2025F
• Figure 4-8: Canada - Diabetes Market* (in Million CA$), 2005-2007E & 2012F
• Figure 4-9: Canada - Forecast for Population above 65 Years of Age (in Million), 2008-2011
• Figure 4-10: Canada - Forecast for Deaths by Various Causes (%), 2008-2012 & 2030
• Figure 4-11: Canada - Forecast for Pharmaceutical Sales (in Billion CA$), 2008-2012
• Figure 4-12: Canada - Forecast for Generic Drug Sales (in Billion CA$), 2008-2012
• Figure 4-13: Canada - Forecast for Branded Drug Sales (in Billion CA$), 2008-2012
• Figure 4-14: Canada - Forecast for Share of Branded & Generic Drugs by Prescription (%), 2008-2012
• Figure 4-15: Canada - Forecast for Branded & Generic Drugs by Sales (%), 2008-2012
• Figure 4-16: Canada - Forecast for Contribution of Branded & Generic Drug Sales in Growth of Pharmaceutical Market (%), 2007 to 2012
• Figure 5-1: Canada - Nominal GDP (in Million US$), 2001-2007E
• Figure 5-2: Canada - Consumer Price Index (%), 2001-2007E
• Figure 5-3: Canada - Forecast for Consumer Price Index (%), 2008-2011
• Figure 5-4: Canada - Currency Exchange Rates (From CA$ to US$), 2001-2007
• Figure 5-5: Canada - Population (in Million), 2001-2007E
• Figure 5-6: Canada - Forecast for Population (in Million), 2008-2011
• Figure 5-7: Canada - Life Expectancy (in Years), 2001-2007E
• Figure 5-8: Canada - Forecast for Life Expectancy (in Years), 2008-2011
• Figure 5-9: Canada - Population Breakup by Age Group (%), 2002-2007E
• Figure 5-10: Canada - Forecast for Population Breakup by Age Group (%), 2008-2011
• Figure 5-11: Canada - Per Head Healthcare Spending (in US$), 2001-2007E
• Figure 5-12: Canada - Forecast for Per Head Healthcare Spending (in US$), 2008-2011
• Figure 5-13: Canada - Number of Doctors (per ‘000 Population), 2002-2007E
• Figure 5-14: Canada - Forecast for Number of Doctors (per ‘000 Population), 2008-2011
• Figure 5-15: Canada - Number of Hospital Beds (per ‘000 Population), 2001-2007E
• Figure 5-16: Canada - Forecast for Number of Hospital Beds (per ‘000 Population), 2008-2011

List of Tables:

• Table 2-1: Canada - Top 10 Therapy Areas by Prescription* (in ‘000), 2006
• Table 2-2: Canada - Top 10 Therapy Areas by Sales* (in ‘000 CA$), 2006
• Table 2-3: Canada - Top Pharmaceutical Companies by Retail Prescription (in Million), 2006
• Table 2-4: Canada - Ranking of Top Pharmaceutical Companies by Retail Prescription (2001-2006)
• Table 2-5: Canada - Top Pharmaceutical Companies by Sales* (in Million CA$), 2006
• Table 2-6: Canada - Ranking of Top Pharmaceutical Companies by Sales* (2001-2006)
• Table 2-7: Canada - Top Drugs in Pharmaceutical Market by Prescription* (in Million), 2006
• Table 2-8: Canada - Top Drugs in Pharmaceutical Market by Sales* (in Million CA$), 2006
• Table 3-1: Canada - Top Generic Drug Companies by Retail Prescription (in Million), 2006
• Table 3-2: Canada - Ranking of Top Generic Drug Companies by Retail Prescription (2002-2006)
• Table 3-3: Canada - Top Generic Drug Companies by Sales* (in Million CA$), 2006
• Table 3-4: Canada - Ranking of Top Generic Drug Companies by Sales* (2002-2006)
• Table 3-5: Canada - Pharmaceutical Sales by Distribution Channel (%), 2002-2006
• Table 3-6: Canada - Generic Drug Market by Retail & Hospital Sales (%), 2007E
• Table 3-7: Canada - Number of Retail Pharmacies by Category (2001-2006)
• Table 3-8: Canada - Top Therapy Areas by Retail Sales (in Million CA$), 2006
• Table 3-9: Canada - Ranking of Top Generic Players by Retail Sales (2006)
• Table 3-10: Canada - Top Therapy Areas by Hospital Sales (in Million CA$), 2006
• Table 3-11: Canada - Ranking of Top Generic Players by Hospital Sales (2006)
• Table 3-12: Canada - Per Capita Drug Spending of Public & Private Sector by Region (in CA$), 2006E
• Table 3-13: Canada - Generic Drug Prescriptions by Region (%), 2001-2006
• Table 3-14: Canada - Generic Drug Sales by Region (%), 2004 & 2006
• Table 4-1: Canada - Returns for Pharmacists on Generic & Branded Drug (in CA$)
• Table 6-1: Mylan Laboratories Inc. - Key Financials (in Million US$), 2005-2007
• Table 6-2: Teva Pharmaceutical Industries Limited - Key Financials (in Million US$), 2004-2006
• Table 6-3: Sandoz Inc. - Key Financials (in Million US$), 2005 & 2006