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Companies could go through 10,000 drugs before getting 1 that they can release to the market. Additionally, the FDA has increased scrutiny for approving drugs. The number of approved drugs has been decreasing the last few years, going from 30-40/year to 15-20.
Furthermore, Pharmaceutical companies rely on having a strong pipeline of drugs to release. Unfortunately, many of the top companies have weak pipelines. This means that they do not have a lot of drugs that are in the various development stages shown in figure 1. What this all means is that without a lot of new drugs coming on the market and companies having weak pipelines, it is expected that generics will continue to grow...
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