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Datamonitor Report: US Most Susceptible to Brand Erosion Post Patent Expiry


1/12/2011 10:22:27 AM

January 2011 -- Small molecule brands in the US experience the greatest degree of brand erosion following patent expiry and exposure to direct generic competition, according to a new report from independent market analyst, Datamonitor*.

Following the US, brand erosion is next most severe in the UK, Germany, and France, with brand erosion the lowest in Australia, Italy, Russia, Spain, and Japan.

Brands tended not to experience generic erosion in China following patent expiry since they often face generic competition from the outset, and instead continue to grow both in terms of volume and value.

Maura Musciacco, healthcare analyst at Datamonitor comments: “Brands in the US, regarded as the most mature of all generics markets, experienced the greatest degree of brand erosion following patent expiry and exposure to direct generic competition. On average, sales and volume decline by 72% and 70%, respectively, after 6 months of generic competition.

“The key driver for the uptake of generics drugs is the cost-savings they bring, a quality that is undoubtedly even more in demand as the US contemplates adoption of universal healthcare.”

Brand erosion was greater in terms of speed and severity in the hospital setting, most likely reflecting the greater brand loyalty among patients in the retail setting. While in terms of erosion by therapy areas, sales and volume erosion was the greatest among infectious disease, oncology, and cardiovascular small molecule brands.

“Pharma is facing slowing sales growth in the developed pharmaceutical markets, driven by increasing generic competition leading to sales erosion of branded small molecule drugs post patent expiry. However, the speed and severity of brand erosion is by no means equal across countries, prescribing setting, therapy area and formulation type; factors which are of key importance when managing and forecasting branded drug sales,” concludes Maura.

Based on the report: Brand Erosion Post-Patent Expiry | An analysis of small molecule brand erosion post-patent expiry Maura Musciacco is available for comment.

To arrange an interview or for further details regarding this release please contact Joe Dixonin the Datamonitor press office on + 44 (0)161 238 4082, or email jdixon@datamonitor.com

ABOUT DATAMONITOR

The Datamonitor Group (www.datamonitor.com) is a world-leading provider of premium global business information, delivering independent data, analysis and opinion across the Automotive, Consumer Markets, Energy & Utilities, Financial Services, Logistics & Express, Pharmaceutical & Healthcare, Retail, Sourcing, Technology and Telecoms industries. Combining our industry knowledge and experience, we assist more than 6,000 of the world’s leading companies in making better strategic and operational decisions.


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