Frequently Asked Questions
We have collected the most important and frequently asked question about our business. Please note that generics are subject to different legal definitions in different countries. The definition of generics used in this context does not make reference to any particular legal definition.
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- What are generics?
- Generic medicines or "generics" are pharmaceuticals that contain the same active ingredients in the same concentration as the original – reference – medicine; they have the same dosage form and have demonstrated bioequivalence. Because they act in the same way in the human body, generics are interchangeable with reference products. Generics usually come to market after the data protection periods of the relevant reference products resp. their patents have expired.
- What is the advantage of generics?
- Generics offer the same efficacy as reference products at a significant discount. Lower prices make medicines available to people who might otherwise be unable to afford them. They also help to relieve financial pressure on increasingly cost-conscious public health systems.
- Why am I suddenly hearing so much about generics?
- Demand for medicines is increasing globally, driven by a steadily increasing life expectancy, economic growth, related lifestyle changes and technological progress worldwide and an aging population in developed countries. Consequently, healthcare costs continue to rise year after year. Governments and health professionals worldwide are realizing the importance of promoting generics and act accordingly.
- Why are generics important for global health?
- Medicines represent between 8% and 15% of a country’s total health spending. Developed countries are struggling to control rapidly rising healthcare costs, while people in developing countries are often unable to afford live-saving medicines. Generics increase the access by reducing the costs and often help to protect lives. In addition, saving the money can unleash resources for new innovative medicines – which in turn will become the generics of the future.
- How big is the market for generics?
- Generics already have a greater overall market share than reference products in many countries. However, their total cost is still much lower, because they cost significantly less. For example, in 2005, generics in the U.S. accounted for 56% of total medicines sold, but only 13% of sales revenue. In Germany, they accounted for 51% of medicines sold, but only 29% of sales.
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