Biosimilars and generic drugs are reshaping pricing dynamics in the global pharmacy market. Patent expirations on biologics and blockbuster drugs are creating opportunities for biosimilar and generic substitution, expanding volume through pharmacy channels while compressing per-unit prices.

The pharmacy market was valued at USD 1,162.21 billion in 2025 and is projected to reach approximately USD 1,822.58 billion by 2035, growing at a CAGR of 4.6%. Biosimilar and generic substitution are identified as important market drivers.

The period 2025–2030 will see patent expirations on biologics generating over USD 100 billion in current annual sales, including adalimumab, pembrolizumab, and ustekinumab. The resulting biosimilar substitution is expanding volume through pharmacy channels while compressing per-unit prices by 40–70%.

Generic drugs are gaining ground as blockbuster patent cliffs between 2025 and 2032 accelerate volume substitution. Government formulary policies in Europe and Asia-Pacific that mandate generic substitution wherever bioequivalent alternatives exist are the primary catalyst for this shift.

Branded drugs command the largest revenue share due to premium pricing on biologics and specialty medications, though generic drugs are growing faster. European markets lead biosimilar adoption with penetration rates exceeding 80% in Scandinavian countries.

Retail pharmacy, e-pharmacy, and hospital pharmacy channels are all affected by biosimilar and generic substitution. Specialty pharmacy is also expanding as high-cost biologics and cell therapies require specialized dispensing infrastructure.

Key players include CVS Health, Walgreens Boots Alliance, McKesson Corporation, Cencora, Cardinal Health, UnitedHealth Group, Cigna Group, and Amazon Pharmacy.

Read more: Pharmacy Market Size, Share, Trends

People Also Ask

Q1. Why are biosimilars important?
Biosimilars expand access to biologic therapies at lower costs, supporting volume growth while compressing per-unit prices.

Q2. How do generics affect pharmacy revenue?
Generics expand prescription volume but compress per-unit revenue, creating a dynamic that grows script counts while pressuring revenue per prescription.

Tags: biosimilars, generic drugs, pharmacy pricing, patent expirations, specialty pharmacy