New Wave of Biosimilar Drugs May Boost Generics ETF

Consequently, as a way to mitigate the costs, regulators have laid the groundwork for generic biologics – health care savings from biosimilars could range from $25 billion to $250 billion over the 2014 to 2024 period. Biosimilars is also gaining traction as major U.S. presidential candidates have publicly called for controlling skyrocketing drug prices.


The increased focus on the space could help biosimilars grow from $2.4 billion in 2014 to $26 billion by 2020 on the expiration of patent protection for blockbuster biologic drugs. Evaluate Pharma calculated that biologics with aggregate U.S. sales of $79 billion will lose their patent protection between 2013 and 2018.

GNRX’s underlying index also includes about a 15% tilt toward biosimilars. Moreover, generic drug companies included in the underlying index are looking into biosimilars as their next growth opportunity.

Market Vectors Generic Drugs ETF