Patents Cliff Promotes Growth in Pharma and Packaging

Patent expirations and an increase in drug launches will drive growth in the pharmaceutical industry that trickles down to packaging machinery.

Patent Cliffs Lead to Competition and Lower Prices
Patent Cliffs Lead to Competition and Lower Prices

A new report from PMMI Business Intelligence titled Global Trends Impacting the Market for Packaging Machinery 2018 sheds light on the impact of patent cliffs on blockbuster drugs. When patents expire, it opens the door for competitors to enter the market with low-cost alternatives, resulting in decreased revenue for the patent holder. With more products in the market, the demand for different new and different packaging increases.

The FDA approved 51 new drugs in 2015, which was the highest in 66 years, and the second highest in history. The report notes that this trend is expected to continue over the next four years, resulting in $60 billion of drug sales becoming at risk for competition. The shift in the market could also lead to an increase in acquisitions as large companies seek to absorb rivals rather than compete.

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