Considering the fact of finance deficiency in the government or private medical systems, as well as the costs of original medication under such systems, generics become more popular and now used more often with great desire. Seeing that production of generics is quite cheaper.
Also please notice such an important marketing characteristic of copied medication as the ability to stimulate the progress of medication development in general as well as the progress of pharmacy industry. We are speaking about innovative generics, i.e. medication which is based on innovative original medicine. Such medicine is differentiated by new mechanism of application or effect, as well as it has got new effects, which provide better treatment and safer application in general. Besides all the above one of the most important criteria of calling the generic medicine innovative is that it appears on pharmacy market shortly after the license date expiration of the original medicine.
So in this case generics can be competitors not only among generic medication but the can also compete with the original medication. At this point the experts consider the presence of generic medication as one of the main factors of innovative developments stimulation.
The commission of Europe Union on internal pharmacy market in its research of 1998 highlighted the necessity of stimulation of competition among generics, as this competition contributes to more competition at the pharmacy market.
Thus the experts of Western countries consider the appearance of generics on the market as a tool for competition. At the expense of this competition pressure the spire of pharmacy market progress is being untwisted; after the original medication patent is expired the company loses the monopoly rights in this particular market niche, so its original medication becomes the first one among equals, and is not the only one in the market any more.
That is why the manufactures are developing and introducing new original medication long before the possible appearance of generics as during the next 15 years those will be the dominants in those particular market niches. And there is also a certain cycle in this as well, in order to compensate all the costs of development and marketing of innovative medications, there is a need in huge revenues, which can be obtained only due to monopolistic manufacturing of innovative medicine, whereas in order to be able doing this manufacturers have to invest money into the research and development. So if there were no generics the would had been no competition in those niches, so there would had been no pressure making the companies create new medicine.