Generic Drugs
This industry manufactures bioequivalent versions of brand-name pharmaceuticals once patents expire, competing primarily on price and production volume rather than novel discovery.
Why it exists
Generic drug companies exist to replicate off-patent drugs at lower cost.
Why it’s necessary
They dramatically reduce healthcare spending while maintaining access to essential medicines.
Key components
Reverse formulation engineering
FDA/EMA approval processes
High-volume manufacturing
Aggressive distribution contracts
How to evaluate businesses
Cost efficiency, manufacturing reliability, FDA compliance record, pricing pressure exposure, and buyer concentration define performance.
How the industry could be improved
More resilient supply chains, domestic manufacturing, automated quality assurance, and better inventory forecasting to prevent shortages.