United Kingdom Generic Drugs Market: Overview

United Kingdom has a high number of generic producers present in market, making the generic segment of the pharmaceuticals market in the UK fragmented. 

• Rx Pattern: As per National Health Service(NHS), Number of generic prescriptions doubled between 2005 and 2017 from 415m to 824m. Generically dispensed prescriptions Increased share from 59% to 75%  
• Prices: According to the British Generic Manufacturers Association (BGMA), generic medicines are between 20% to 90% less costly than the original price of their brand-name equivalents                     
• Government Initiatives: Growth of generic prescriptions, has been facilitated partly by targeted government initiatives to encourage doctors to write ‘open scripts’ which specify only the name of the chemical substance (or molecule) and not any particular brand name.  
• Incentives: UK regulatory system for pharmacists incentivizes them to dispense generic medicines against open scripts, which in turn contributes to price reductions through competition between manufacturers   
• NHS cost saving: In 2022, generics accounted for more than 75% of the volume of medicines covered by basic health coverage in United Kingdom. The use of generic medicines already saves the National Health Service(NHS) over £12bn per year.  

Entering United Kingdom market with unbranded generics   

• Current Scenario
  Strong Generic Prescription and dispensing rate:  >82% of all prescriptions are prescribed by international non-proprietary name (INN)/ or molecule name, and >65% are dispensed as unbranded generic products in United Kingdom 
  Strong Government initiatives: Patients are informed about unbranded generic medicines through leaflets, and medical students are taught to prescribe by international non-proprietary name (INN) in British medical schools
  Financial Incentives: UK price regulation system provides strong incentives to all key players to encourage generic medicines use. Physicians are given incentives to write open scripts without brand names. Pharmacies are provided incentives to dispense the least expensive generic product. Reimbursement structure incentivizes generic suppliers to offer competitive prices to pharmacies, thereby driving prices down.  

• Case Study
  Teva launched first generic version of Lipitor(Atorvastatin) in the UK, which is a anti-cholesterol drug
  Cost efficient: Teva’s pill cost’s 14 times less than the branded drug Lipitor.  The highest price for atorvastatin is £2.26 as compared to £28.21 for Lipitor, for a month’s supply, which is 92% cheaper in price
  Strong NHS Savings: According to the British Generic Manufacturers Association (BGMA), buying generic alternatives to Lipitor helped the National Health Service(NHS) to save up to £350m per year.              

Entering United Kingdom market with branded generics   

• Current Scenario
  Price Driven: Generic market is price driven in U.K. Players can reduce the price of their Generic branded product cheaper than the current product in the market to promote market share of the branded product 
  High Marketing Price: Branded generic drug company selling their brands into the market at prices that include the costs of their marketing efforts with prescribers can increase total cost of product     
  Less discount through NHS: Endorsing branded generics makes pharmacy contractors to purchase branded products for which there is little or no discount, but the discount reduction is still applied when the prescription is priced by NHS Prescription Services. Consequently the items may be reimbursed at less than cost price to the pharmacy.                        

• Case Study 
  Mylan launched Brabio(Glatiramer acetate), a new Branded generic version for the multiple sclerosis therapy Copaxone in the UK.
  Additional access: Mylan’s main strategy behind launch of Brabio(glatiramer acetate) was to bring additional access for the approximately 100,000 patients in the UK suffering with multiple sclerosis, and to bring more treatment options for the healthcare professionals
  Strong NHS Savings: Mylan’s Brabio is available at a lower acquisition cost to the National health service, which helps to expand use of best value medicines via the NHS’ Medicines Value Program, and thus bring things in a cost-efficient way for the NHS or the payers

Snapshot of United Kingdom drug Market

• Prescription: >82% International Nonproprietary Names (INN)/unbranded generic Prescription
• Dispensing: Wholesaler/Pharmacy chain influence
• Purchase: High government discount rate
• Critical Success Factors: Low cost of production, Breadth of Portfolio, Flexible supply in the retail market

Market Segmentation

• By Drugs Class/Therapy Area
  • Analgesic and antipyretic (Ketoprofen IV)   
  • Painkiller in joint pain and muscle pain etc.(Nefopam IV)
  • Abdominal pain, treating IBS, lower GIT motility disorder (Trimebutine IM/IV)
  • Antianginal agents(Isosorbide dinitrate IV)
  • Antineoplastics (Anastrozole) 
  • Cephalosporins for bacterial infections  (Cefepime IM-IV, Cefoxitine)         
  • Others