Some manufacturers of originator medicines are marketing their own ‘generic’ version. This may be within the same company. For example, Sandoz is owned by Novartis and functions as its generic pharmaceuticals division, the second largest within Novartis. Other manufacturers of originator medicines launch ‘authorised generics’. An authorised generic is a medicine marketed by the manufacturer of the originator but sold under a generic name at a lower price. It may be distributed by the manufacturer itself or under licence to a generic medicines manufacturer. Authorised generics tend to enter the market prior to, or at the time of, patent expiry, and thus may reduce the incentive for independent generic medicines manufacturers to enter the market.

Generic medicine pricing in Europe is influenced by price competition from Indian generic medicines manufacturers. Prices of generics manufactured in India were in 2005 an average of 63% cheaper than the average price in nine European countries.

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