Name-Brand Generics

Soon many pharmaceutical blockbusters sold by prescription only will face generic competition; in developing nations, demand for basic prescription drugs is growing much faster than in the U.S. and many Western countries. Retailers are even getting into the act with their own generic versions of drugs.

Based on these trends, the big drug companies are fighting back with name-brand generic strategies. One strategy is to buy pharma firms in India. Another is to license drugs to generic manufacturers overseas (think India).

A third strategy is to market generics under a brand that speaks to consumers' interest in quality as well as price. Margins are healthy, and with many consumers feeling economically challenged, sales of generics are booming.