Global prescription sales growth of generics drugs slowed to 3.6% in the twelve months ending September 2008, down from 11.4% in 2007, according to a new report by IMS Health. Global generics products generated $78 billion in audited sales in the twelve months through September, reflecting the changing industry dynamics that also are affecting branded pharmaceutical products.

“The global generics market has posted double-digit gains in recent years. But in 2008, despite robust volume increases, we are seeing the first significant decline in sales growth as manufacturers increasingly compete in fierce price battles within most of the world’s major markets,” said Murray Aitken, senior vice president, Healthcare Insight, IMS. “This trend is very apparent in markets like the U.S. and U.K. as generics companies contend with aggressive competition and cost-containment measures enforced by both private and government payers.”

The top eight global markets – the U.S., Germany, France, the U.K., Canada, Italy, Spain and Japan – today account for 84 percent of total generics sales. The U.S., the world’s largest generics market with 42 percent of global sales, has experienced a 2.7 percent sales decline in the twelve months ending September 2008 while volume increased 5.4 percent during the same period. Generics products now account for 63.7 percent of the total U.S. pharmaceutical market volume. The U.S. generics market is currently valued at $33 billion, compared with $34 billion last year, reflecting declining prices and fewer blockbusters losing patent protection in 2008. However, generics sales rose 10.2 percent in Japan, 16.9 percent in France, 12.5 percent in Italy and 10.5 percent in Spain in the twelve months through September.

The top 10 generics companies currently hold a 47 percent share of the generics market worldwide. The three leading generics manufacturers are Teva with 11 percent market share, Sandoz with 9 percent, and Mylan with 8 percent.