Matej Mikulic
Research expert covering health, pharma & medtech
Generics and biosimilars - Statistics & Facts
Generic drugs have become a cornerstone of health care systems around the globe, offering a cost-effective alternative to expensive brand-name medications. Despite accounting for only a small percentage of total prescription drug spending, generic medications dominate the market in terms of prescription volume. This stark contrast between cost and usage highlights the significant impact generic drugs have on making healthcare more accessible and affordable for millions of people worldwide.
Generics: cornerstone of health care systems
The worldwide generic drug market was valued at approximately 420 billion U.S. dollars in 2023, with projections indicating growth to over 600 billion U.S. dollars by the early 2030s. This booming market is driven by the substantial savings generic drugs provide to healthcare systems. In the United States alone, generic drugs and biosimilars saved the healthcare system a staggering total of over three trillion U.S. dollars over the past decade (2014-2023). The impact of generic drugs on prescription patterns is evident, with branded drugs consistently accounting for only eight to nine percent of all prescriptions dispensed in the U.S. in recent years. Generics are medications that are designed to work the same way as brand-name drugs but at a lower cost. This is possible once the patent protection of a branded drug expires. Despite the dominance of generic drugs in prescription volume, it's worth noting that branded drugs still account for nearly 86 percent of total U.S. prescription drug spending, highlighting the significant cost differences between generic and branded medications.Biosimilars: making innovative drugs accessible
Biosimilars are to biologic drugs what generics are to pharmaceuticals - they enter the market after the original biologic drug's patent expires, offering a highly similar product with equivalent safety and efficacy at substantially lower prices. They are rapidly emerging as a significant factor in the healthcare industry, offering substantial cost savings and market growth potential. The global biosimilar market is currently valued at around 35 billion U.S. dollars, and it is projected to experience a remarkable compound annual growth rate of around 18 percent between 2024 and 2033. This growth is driven by the ability of biosimilars to provide more affordable alternatives to expensive biologic drugs. In the United States, biosimilars of the autoimmune drug Remicade were able to reduce costs by 19 to 59 percent, demonstrating the potential to significantly lower expenses. This example suggests that biosimilars are poised to play an increasingly important role in healthcare, providing cost-effective treatment options and potentially improving patient access to vital and innovative medications.
