Top drugmakers bet on trade generics to grow beyond metros
Trade generics is seeing a lot of action in recent times with the entry of large domestic pharmaceutical companies, who want to expand beyond metros and other top cities where they see potential growth in years to come. Trade generics are branded medicines that are not promoted to physicians but are directly sold through retailers and distributors. In India, trade generics have a market share of 20% by volume and 5-6% by value, according to data and analytics firm IQVIA.
The segment is growing around 14-15% per annum.Dr Reddy's Laboratories became the latest entrant to test waters in trade generics. The Hyderabad-based drug maker aims to roll out its trade generics across cities and towns in India as well as rural areas. The company said it will work closely with its channel partners to ensure availability of the products.
«The feedback that we got from the market is that patients and the consumers are looking for high-quality medicines. Retailers are looking forward for companies like Dr Reddy's to enter the space,» said MV Ramana, chief executive of branded markets (India and emerging markets) at the drug maker. «Today we represent with our portfolio about 50% of the market, so there is a large part of the market we don't have representation.
We feel that we want to get into the space with high-quality generics,» he added. Other large companies with a domestic formulation footprint, like Glenmark, Abbott, Torrent Pharma and Mankind are also trying to get a toehold in the trade generics segment. Cipla and Alkem are two large companies that have successfully made inroads into trade generics.
Trade generics contributed about 21% of Alkem's India business in FY23. Cipla doesn't give a breakup, but it is significant. At
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