Global Pharma Corp.
133 Richmond St. M5H 3V6 Toronto, ON, Canada

China and India have taken over majority of the world's pharma industry market share. But they have not been able to copy expensive biotech and drugs until now. These generic drug companies say they are on the verge of selling cheaper copies. Their entry into the market in the next year made possible by hundreds of millions of dollars invested in biotechnology plants could not only transform the care of patients in much of the world.

Global Pharma is expected to grow 7-8% up to 2020 valued at US$1.7 trillion. The main driver will be generic drug industry, which is expected to post double digit growth rates.

Pharma conference debuts in Cape Town, South Africa. The goal is to network generic drug makers to address issues and concerns re: the pharma industry. The number of participants is expected to be higher this year.

Dr Reddy's and Fujifilm have signed a memorandum of agreement to enter into the generics drugs business for the Japanese market. Given the good prospects of generic drugs business, this move is no surprise. The JV will launch the products in the next 3-4 years. It plans to deliver high quality generic drugs and contribute to growing the generics market.

The clampdown of generic drug payments continues as Nova Scotia passed a law on Fair Drug Pricing Act. People are concerned with higher drugs. Moving forward, we expect new laws to be beneficial to generic drug makers.

After a year of generic version of therapeutic biologics, the Food and Drug Administration is expected to issue a guidance on the Act. However, the complex issues will have to be discussed with key industry players and various consumer groups.

Barron is bullish about generic drug maker Teva Pharmaceuticals, citing that revenues could double in 2015 from string of acquisitions and rising demand for generic drugs. Fund manager Ted Harper is also bullish on the industry saying that investors can buy dividends on these stocks and has some call option on the global penetration of generic drugs.

One of the advantages of the generic drug is that it gives advantage to its value chain. In fact, pharmacy costs have increased slightly due to the use of generic drugs. Given the need of higher margins to survive in an uncertain environment, we expect more pharmacies to use generic drugs than its branded counterparts.

Spain has passed a law that will make doctors write the generic name of the drugs they prescribe. However, this only applies to old drugs whose patents have expired. The government hopes that they could save at least 2.4 billion euros with the law. This is in line with the country's austerity plan.

The additional generic fees will definitely boost FDA's capacity to inspect overseas active pharmaceutical ingredient manufacturing plants. This will fast track the approvals of generic drugs, which would mean that branded drugs will experience lower sales in the future.

According to this article, generic pharma has spent at least $500k to lobby government laws on healthcare reform and issues related to prescription drugs. The group also consulted with legislators to discuss the issues and concerns with generic pharma industry.

More generic drug companies are willing to pay extra to fast track the approval of Food and Drug Administration (FDA). According to reports, a sum of $299 million will be paid in the first year to accelerate approval. This only goes to show that revenues for generic drug makers are expected to be higher in the future.

Pharma companies appear to be a safe-haven investments in a period of prolonged uncertainties. Jefferies & Co. analyst said that investors will reposition themselves and buy pharma stocks because of their strong cash flow generation and balance sheet.