Generic drugs, which are typically cheaper than name-brand products, have also seen prices increase, with some 22% of top-selling generic prices rising more than inflation, reports John Russell for Chicago Tribune. Nevertheless, the Generic Pharmaceutical Association argues that generics still sell for a fraction of the top brands, which has saved Americans $1.68 trillion over the past decade.
“It’s hard to imagine another sector that can claim nearly 90 percent of a market while delivering it at nearly a quarter of the total cost,” Chip Davis, the association’s president and CEO, said.
Despite the rising prices, the generic drug industry still enjoys stronger fundamentals. Specifically, spending on generics is expected to rise from 40% in 2013 to 46% in 2018.
“With much of that expected growth coming from emerging markets, we believe having global exposure is essential,” Duffy added.
In the developed markets, population growth and an aging demographic are expected to fuel growth. Meanwhile, improved access to health care and a rising middle class could drive growth in the emerging markets.
GNRX includes a heavy 40.9% tilt toward the U.S., along with 19.6% India, 8.6% Israel, 6.4% South Korea, 5.9% Japan, 5.1% China, 3.4% Belgium, 1.7% Switzerland, 1.6% South Africa, 1.3% Jordan and 1.0% Indonesia.
Max Chen contributed to this article.