The Impact of Generic Drug Entry in the South African Market
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University of the Witwatersrand, Johannesburg
Abstract
This study explores the impact of generic drug entry into the South African pharmaceutical market, focusing on pricing strategies, market competition, patient access, and regulatory dynamics. Using a qualitative approach, semi-structured interviews with pharmaceutical marketers revealed that the introduction of generics substantially lowers medicine costs, increases affordability, and places downward pressure on originator drug prices. Thematic analysis showed that medical aid reimbursements, regulatory price controls, and market competition shape pricing decisions. However, resistance persists among some healthcare professionals and patients due to lingering concerns over generic drug efficacy and quality. To address this, educational campaigns and rigorous bioequivalence testing were identified as crucial enablers of acceptance. The study further found that generics improve healthcare accessibility, especially in rural and underserved areas where affordability significantly influences treatment adherence. Despite these gains, regulatory hurdles such as patent laws and delayed approval timelines impede timely market entry of generics. The research recommends that policymakers expedite regulatory approvals and implement targeted awareness strategies to build public trust in generics. This study contributes new insights into the strategic perspectives of pharmaceutical marketers and offers actionable recommendations to improve generic medicine uptake. It lays a foundation for future research using quantitative methods to measure economic and health outcomes more precisely. Overall, the findings support broader policy objectives aimed at promoting equitable access to essential medicines and reducing healthcare system costs through increased use of generics in South Africa.
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A research report submitted in fulfillment of the requirements for the Master of Business Administration, in the Faculty of Commerce Law and Management, Wits Business School, University of the Witwatersrand, Johannesburg, 2024
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Leballo, Tshepiso. (2024). The Impact of Generic Drug Entry in the South African Market [Master`s dissertation, University of the Witwatersrand, Johannesburg]. WIReDSpace. https://hdl.handle.net/10539/47749