Generics are unsustainable now – shortages prevail and only a few producers remain on the market

Ongoing generics shortages The US generics market was valued at $90.4 billion in 2023 and is estimated to be expanding at a CAGR of 3.5% to reach $124.3 billion by 2032 — despite downward pricing pressure owing to the rising incidence of chronic diseases and the continued loss of patent protections.5 Branded prescription drugs are estimated to be nearly 2.5 times more expensive for US patients than for consumers in similar markets; and, because generics are cheaper, those low prices are threatening the sustainability of the market. Many producers have withdrawn from the market, leaving just one or two suppliers of many generic drugs. In addition, because competition is generally defined only by cost, most players still in the business outsource to contract manufacturers in Asia. However, quality and manufacturing problems have become real issues and have led to a large number of drug shortages for many important medicines. For some of these drugs, no alternatives are available, leading physicians to ration care and leaving some patients without much-needed medicines.