In December 2007, the Wall Street Journal reported that, starting in 2010, the pharmaceutical sector will face the biggest wave of patent expiration in the industry's history. At the time, experts predicted that competition from makers of generic pharmaceuticals could wipe out $67 billion from big pharma's US sales between 2007 and 2012 as more than three dozen blockbuster drugs saw their patents expire. Amounting to nearly half of all drug companies' combined sales in the US for 2007, this shift of revenue has undoubtedly had a huge impact on the life sciences and pharmaceutical industry worldwide. An indication of how quickly the generic drugs business has grown in less than a decade is the size of its global revenues now estimated to be approximately US358 billion.
Once a drug comes off patent, generic manufacturers can begin producing and selling their own version of the drug at a fraction of the cost to the consumer.
The upward trend in sales of generic medicines undoubtedly represent a seismic shift in how the industry will operate in the years and decades to come. Traditional pharma companies will have to do business differently — which may involve, amongst other strategies organizing targeted mergers and acquisitions of leaders in the generic drugs sector.
At VMS Rehab Systems, we believe that concomitantly with the formation of BioPharmcor B.V. (www.biopharmcor.com) and its wholly owned subsidiaries in Poland and Canada, we are participating in the dawning of a new age in the pharmaceutical business, one in which generic drugs, in concert with advanced technologies and custom tailored therapies, will form the arsenal for Big Pharma.
The Company’s BioPharmcor unit is currently in the final stages of development and testing of its generic tadalafil product prior to entering an intensive period of human clinical trials. The clinical trials are essential to demonstrate the bioequivalence of the BioPharmcor generic tadalafil drug against the marketed name brand patented product, to support submissions for market approval in a number of countries. BioPharmcor’s tadalfil is intended as a first line treatment for men suffering from Erectile Dysfunction (ED) and Benign Prostatic Hyperplasia (BPH). It is estimated that the market for ED drug remedies is approximately $4.5 billion worldwide.