Released on: June 9, 2008, 12:08 am

Press Release Author: Shushmul Maheshwari

Industry: Pharmaceuticals

Press Release Summary: By 2012, generics is projected to account for about 26% of
total Canadian pharmaceutical market as the penetration of generics is growing
rapidly in the country, says RNCOS research.

Press Release Body: According to the latest RNCOS research report, “Generic
Drug Market in Canada”, generics is increasingly penetrating the
pharmaceutical market of Canada, and by 2012, the segment is forecasted to make up
for around 26% of the total Canadian pharmaceutical sales.

The report recognizes tremendous cost savings provided by the generic drugs as one
of the major growth drivers for the Canadian generics market. This is because
generics, unlike branded drugs, do not require costly clinical trials and
development process and thus, the prices of generics are lower in comparison to
other branded drugs. For instance, average price of a generic drug was US$ 24.68
(CA$ 24.75) in 2006, which is nearly 61% less than the price of a branded drug.

Therefore, due to low prices of generics, consumers and insurance companies saved
around CA$ 500 Million (US$ 500 Million) in 2006 in drug purchases. Also, due to the
use of generics in place of branded drugs, consumers have saved big amounts by
paying lower copayments, while both private as well as public insurance companies
have saved from low prices of drugs. Resultantly, generics usage is being strongly
pitched in Canada.

Furthermore, patent expiration of major blockbuster drugs is also considered as a
major factor influencing the growth of generics market in the country. According to
the Canadian IPR (Intellectual Property Rights) laws, generic makers can design
generic versions of branded drugs after the expiration of their patent. Thus, all
the drugs, which have lost their market exclusivity and patent in Canada, can be
sold as generic versions.

And as several blockbusters are anticipated to lose their patent protection in
short-term (2008-2012), this will pave the way for the growth of generics market.

“Generic Drug Market in Canada” provides complete evaluation of positive
as well as negative factors which differentiate the country from European and the US
generics market. The report also identifies the reasons for influx of foreign
players to the Canadian market. Also, it gives objective analysis on the generics
market and based on that, provides forecast on healthcare spending, share of branded
& generic drug sales in pharmaceutical market, share of branded & generic drugs by
prescription, and sales analysis of pharmaceuticals, generic drug and branded drug.

About RNCOS:

RNCOS, incorporated in the year 2002, is an industry research firm. It has a team of
industry experts who analyze data collected from credible sources. They provide
industry insights and analysis that helps corporations to take timely and accurate
business decision in today\'s globally competitive environment.

For more information visit: http://rncos.com/Report/IM598.htm
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