The generic pharmaceuticals business has been trending well for Abbott Labs for some time now. It accounts for around 15% of the company’s value, according to Forbes’ estimates. In Q3 2017, the segment saw double-digit growth in revenues, led by a ramp up in emerging markets, including Brazil, Russia, India and China.
Abbott has a broad line of branded generic pharmaceuticals manufactured worldwide, and marketed and sold outside the U.S. The major products sold through this segment include Creon, Brufen, Biaxin, Influvac and Duphaston, among others.
Frobes believes that the revenue growth in the coming years will be led by higher demand for generic medicines in emerging markets. Abbott’s focus remains on emerging markets, and it is expanding its footprint in the aforementioned regions. Emerging markets are likely to grow at a faster pace due to growth in income and healthcare, coupled with a relatively high degree of price-sensitivity among consumers. Abbott is working towards increasing the breadth of its product offerings by launching new and improved formulations with new branded generics, and expand its presence in these key markets. Also, price sensitivity in emerging markets will continue to offer ideal market conditions for generics, and this should bode well for Abbott.