Healthy Skepticism Library item: 7225

Warning: This library includes all items relevant to health product marketing that we are aware of regardless of quality. Often we do not agree with all or part of the contents.

Publication type: news

Lavelle E.
Hypertension Drug Sales Eroded by Generics, Datamonitor Says
Bloomberg.com 2006 Nov 16
http://www.bloomberg.com/apps/news?pid=20601202&sid=aGeAS4ZCayFc&refer=healthcare

Abstract:

The market for hypertension drugs is slowing even as some 200 million people in the developed world suffer from high blood pressure, according to market research company Datamonitor.

Growth of the antihypertensive market slowed to 4.3 percent in 2005 and is projected to slow even more between 2006 and 2010 due to an increase in generics, Datamonitor said in an e-mailed statement. Drugmakers’ U.S. sales are expected to be hardest hit, according to the U.K. research company’s report. Drugmakers are turning away from the cardiovascular market in favor of more- profitable therapeutic areas such as oncology.

``Pharmaceutical companies with an interest in the cardiovascular face a number of challenges which will impact heavily — most notably brand erosion and health-care reforms,’‘ Datamonitor analyst Laura Greenwood said the statement. ``The slow and declining growth rate does not reflect a stationary market, but the battle between the drugs — both branded and generic — that make up the market.’‘

Rising health-care costs across Europe, the U.S. and Japan are forcing governments and health-care providers to curtail spending and opt for cheaper versions of branded drugs whenever possible.

The pricing of a drug has a direct impact on the revenue created for the company, as does the level of reimbursement that it’s able to secure, Greenwood said.