Market Report Source

Overview

Introduction

The Canadian pharmaceutical market is the 8th largest globally and as such represents an important market for generics manufacturers. Although historically dominated by domestic generics companies, mergers and acquisitions over the last five years have increased the dominance of foreign players.

Scope

• Overview of the size of the Canadian generics market
• Assessment of the key drivers and resistors affecting the Canadian generics market
• Profiles of the leading companies in the Canadian generics market

Highlights

The Canadian generics sector has recorded steady growth over recent years to become one of the more mature generics markets compared to the other major pharmaceutical markets. However a number of issues impacting the market make it a very different operating environment compared to the neighboring US market. Domestic generics manufacturers have historically had an advantage in this market however overseas players have increased there presence through acquisitions over recent years to enable them to benefit from the same advantages.

Reasons to Purchase

• Assess the size of the Canadian generics market relative to the other major markets globally
• Examine the growth drivers and resistors that are shaping this significant generics market
• Benchmark the key companies operating in the Canadian generics market

Table of Contents

CHAPTER 1 EXECUTIVE SUMMARY

Scope of the report

Key findings

CHAPTER 2 OVERVIEW OF THE CANADIAN GENERICS MARKET

Scope

Introduction to the Canadian pharmaceutical market

Canada’s pharmaceutical market has experienced double-digit prescription sales growth since 2002

The generics market represents a significant proportion of both prescription volume and total market value

Key issues affecting the Canadian generics market

The establishment of the Canadian generics market

Differences in healthcare environment and cost-containment initiatives between provinces increase the complexity of operating in the Canadian generics market

Key drivers and resistors impacting the Canadian Generics Market

A range of resistors impact generic market growth

Market exclusivity extension: generics companies must wait longer for generic entry

Pseudo-generics: inhibiting ‘real’ generic growth

A number of drivers are helping to drive generics market growth in Canada

Compulsory licensing for export to developing countries: theoretically an opportunity for generic growth, but in practice proving complex

High cost of generic drugs in Canada relative to rest of world favors generic manufacturers

Early working exception policy accelerating speed to market for generic drugs in Canada

Biosimilars – a potential new industry

CHAPTER 3 KEY GENERICS COMPANIES OPERATING IN THE CANADIAN MARKET

Introduction

Apotex – the largest Canadian-owned generics manufacturer in Canada

Overview

Company strategy

Speed to market

Patent challenges

Diversification into biosimilars

Access to niche markets via Cangene

Diversification into proprietary drugs

Apotex’s domestic position

Company outlook

Teva

Overview

Company strategy

First to file patent challenges

Good distribution infrastructure in Canada

Proprietary drug development

Expansion into biosimilar market

Company outlook

Merck KGaA (Merck Serono)

Overview

Company strategy

Growing pipeline

Diversification into more specialist areas

Geographic growth by M&A

Company outlook

ratiopharm

Overview

Company strategy

Geographical expansion

Expansion into controlled release delivery market

Expansion into biosimilar market

Pharmascience – the second largest Canadian-owned generics manufacturer

Overview

Company strategy

Pipeline expansion

Manufacturing facilities

International ventures

Diversification into OTC business

Company outlook

Other generic pharmaceutical companies

Cobalt Pharma

Stiefel Laboratories

Axcan Pharma

Mayne Pharma

Ranbaxy

Taro Pharmaceuticals

Sandoz (Novartis)

CHAPTER 4 BIBLIOGRAPHY

List of Tables

Table 1: Estimates of Canadian market size, 2003 and 2005

Table 2: Comparison of drug sales per capita

List of Figures

Figure 1: Ethical sales in Canada 2003-05: $5 billion increase in prescription sales

Figure 2: Total market sales and generic sector sales 2002-05

Figure 3: The generic market share as a percentage of total pharmaceutical sales varies across markets

Figure 4: Key issues in Canadian generic industry, 2007

Figure 5: Purpose of launching pseudo-generics/licensed generics globally