Generic Drug Industry Shows Strong Growth as Biosimilar Launches Drive Revenue Expansion
核心洞察
The generic drug industry has outperformed the S&P 500 with over 28% growth year-to-date, driven by successful biosimilar launches of blockbuster drugs including Stelara, Humira, and Eylea.
Sandoz leads the biosimilar market with $8.06 billion in net sales for the first nine months of 2025, achieving 5% growth primarily from double-digit gains in its biosimilars business.
Major generic companies including Teva (搜索) and Dr. Reddy's are positioning for future growth with complex generic portfolios and biosimilar development programs, including early-stage work on Keytruda biosimilars ahead of its 2028 patent expiration.
The generic pharmaceutical industry is experiencing robust growth, with the sector outperforming major market indices as companies capitalize on successful biosimilar launches and expanding portfolios of complex generic drugs. The Zacks Medical – Generic Drugs industry has grown more than 28% year-to-date, significantly outpacing the broader medical sector's 6% growth and the S&P 500's 19% rise.
Market Performance Driven by Biosimilar Success
Key generic launches this year include Stelara biosimilars by generic drugmakers like Amgen and Teva (搜索). Several biosimilar versions of blockbuster drugs like Amgen's Prolia/Xgeva and Regeneron's Eylea have been launched earlier this year, contributing to the industry's strong performance.
The industry currently trades at a forward 12-month price-to-earnings ratio of 14.37X, compared with the S&P 500's 23.61X and the broader medical sector's 21.09X. Over the past five years, the industry has traded as high as 14.37X, as low as 6.51X, and at a median of 9.57X.
Sandoz Leads Biosimilar Market Expansion
Sandoz, the Swiss-based generic drugmaker spun off from Novartis in 2023, has emerged as a leader in the biosimilar space. In the first nine months of 2025, Sandoz achieved net sales of $8.06 billion, up 5% excluding foreign exchange impacts. This growth was mainly driven by double-digit gains in its biosimilars business, led by strong demand for Humira-biosimilar Hyrimoz and Stelara-biosimilar Pyzchiva.
The recently launched Jubbonti (biosimilar to Amgen's Prolia) and Wyost (biosimilar to Amgen's Xgeva) have also contributed to the company's revenue growth. Sandoz recently launched Eylea-biosimilar Afqlir in Europe and acquired a manufacturing and development site in France from Evotec to expand its in-house development and manufacturing capabilities for biosimilars.
The company's stock has risen 77% year-to-date, with consensus estimates for 2026 earnings per share increasing from $3.87 to $3.91 in the past 60 days.
Teva Strengthens Global Position
Teva (搜索), the Israel-based company and world's largest generic drug company by total and new prescriptions, maintains a leading position in both the United States and Europe. The company has successfully launched several biosimilars and high-value complex generics in recent quarters, including liraglutide injection (the first generic version of Novo Nordisk's Saxenda), Simlandi (搜索) (a biosimilar to AbbVie (搜索)'s Humira), Truxima and Herzuma (biosimilars of Roche's cancer drugs Rituxan and Herceptin), and Selarsdi (搜索) (J&J's Stelara).
Teva (搜索) aims to double its global biosimilars sales by 2027 and expects its global generics business to improve with several complex generic and biosimilar launches planned for coming quarters. The company's stock has gained 29% year-to-date, with consensus estimates for 2026 earnings per share remaining consistent at $2.73.
Dr. Reddy's Focuses on Complex Generics Pipeline
Dr. Reddy's Laboratories, the India-based company with a strong position in the U.S. generics market, is accelerating development of its complex generics portfolio. The company markets products across multiple international markets including the U.K., Germany, Russia, Venezuela, Romania, and South Africa.
As of September 30, 2025, Dr. Reddy's had 75 generic filings pending FDA approval, comprising 73 abbreviated New Drug Applications (ANDAs) and two new drug applications. Some generic drugmakers, including Dr. Reddy's, have already started developing biosimilar versions of Merck (搜索)'s blockbuster oncology drug Keytruda, which is set to go off-patent in 2028.
Industry Outlook and Competitive Dynamics
The generic drug industry faces intensifying competition as branded drugs lose exclusivity and rivals undercut prices. Drugmakers are pursuing first-to-file (FTF) status to gain competitive advantages, with the current generic market already crowded and many companies having several generic filings pending before the FDA.
Patent settlements continue to serve as essential catalysts for growth, accelerating the availability of low-cost generic products while removing litigation uncertainties. However, pursuing patent challenges often requires costly litigation, increasing operational expenses for companies in the sector.
With several generic and biosimilar drugs set for launch over the next couple of years, industry revenues are expected to continue improving as companies capitalize on patent expirations of major branded pharmaceuticals.