The increase in supply and availability of generic medicines has led to continued pressure on manufacturers to reduce prices. As drugs become more complex and, therefore, expensive to develop and approve, manufacturers will continue to face challenges in optimizing prices.
Widespread supply chain disruption across industries has affected generic manufacturers, too, as the import of raw materials becomes increasingly challenging. Manufacturers will have to develop and transform operations to better align with this new world order, including the optimization of supply chain processes.
Talent acquisition and workforce development will also pose challenges to the industry going forward, as the number of people entering the market has reduced significantly. Moving forward, it will be important for manufacturers to work together with colleges and governments to encourage higher workforce participation.
A key limitation that generics manufacturers face today is the restriction from manufacturing or selling any medicines developed and patented by brand-name companies. Developing strategies for innovation and R&D will be critical to maintaining a competitive advantage. Generics manufacturers in Asia should also be cognizant of the rapidly decreasing production costs in the US, placing the latter as a more competitive player in the industry over the years to come.
Cedar’s wide range of capabilities across human capital, supply chain design, and cost optimization positions us as your trusted partner in driving your generics business forward.