According to business intelligence firm Cutting Edge Information, the world generic pharmaceutical industry is approaching $40 billion and is expected to grow 10-15% annually for the next five years.
Studies by the international relief agency Oxfam contend that 85% of the world is underserved by the pharmaceutical industry, a potential market value of $1 trillion. Jeremy Hobbs, Oxfam International Executive Director continues, “The industry is operating in a short-sighted way because it could gain enormous benefits from emerging markets, including lower research and development costs and cheaper manufacturing. Yet instead it continues to blindly use its same strategies in poor countries. Even today, the richest 15% of the world consumes over 90% of its pharmaceuticals. At this rate, both the industry and millions of sick patients are losing out.”
It is the strategy of Emerging World Pharma Inc. to invest in companies focused on filling this hugely profitable void left by Big Pharma.
A release by auditing firm KPMG describes how emerging markets are looking good to investors, "Globalization...has VC investors concentrating heavily on capturing emerging-market opportunities, … while looking for the next best thing in eco friendly and medical technologies". KPMG predicted that Biotech and Pharma will receive the second most venture capital investment.
While Big Pharma struggles with slowed R+D and the patenting of new drugs, a plethora of hugely successful meds will be coming off patent. According to the New York Times, over the next five years, $60 billion worth of drugs will be coming off patent helping fuel the generic industries dramatic growth.