Austria Healthcare Generic Drug Market Opportunities
The Austrian pharmaceutical market is poised for significant transformation over the next decade, driven by the expiration of patents for several key drugs. Between 2024 and 2028, approximately 27% of the market’s revenue is expected to be affected as patents for popular biologics and small molecules reach their expiry dates. This presents a substantial opportunity for U.S. manufacturers of generic drugs to capture market share
In 2024, drug patents with an expected market volume of $140 million are set to expire in Austria. This figure is projected to more than double in 2025, reaching $293 million.
These changes will impact both retail (pharmacy-based) and hospital (oncology and other costly treatment) markets. Notably, the share of hospital market volume affected is expected to rise dramatically in 2025, reaching $118 million. Even taking this increase into account, the number is anticipated to stay behind the retail market impact, which is estimated to reach $175 million in 2025. The market structure is similar for both retail and hospital, with off-patent drugs accounting for 36% (retail) and 37% (hospital) of total market revenue, respectively
The greatest obstacle facing the generics market in Austria is the lack of a price signal. Physicians tend to prescribe the name they know, and patients pay a flat-rate co-pay for each package, name brand or generic. Furthermore, the statutory reimbursement system is set up so that prices drop automatically for name brand drugs once the patent expires, and (generic) substitution by pharmacists is not allowed.
Despite these barriers, there are signs that generics uptake is gradually rising. In 2023, the share of generics rose to 59% from 48% in 2017. Generics could also play a significant role in the medicine shortages that have plagued Austria since the pandemic, including basic treatments like certain antibiotics for children. Of the over 500 drugs listed on the official short supply website, 9 out of 10 are available in a generic version.
Furthermore, the Austrian generics manufacturing market presents opportunities for trade in active pharmaceutical ingredients (APIs). With an annual production volume of approximately 285 million packages, more than 90% of which are exported, there is substantial demand. APIs already represent one of the largest categories of U.S. exports to Austria, laying a strong foundation for the strengthening of trade relations
For more information about opportunities in the Austrian market, contact Marta Haustein, Senior Commercial Specialist at CS Vienna: marta.haustein@trade.gov.