Post-patent companies are experiencing heightened competition as a result of fewer AIs falling off patent and market saturation of generic products, writes David Frabotta at AgriBusiness Global. New revenue streams are threatened as a glut of generic crop protection companies battle for market share for fewer than 10 AIs per year reaching post-patent status.
In-country distributors and retailers, in turn, have more options for generic products than ever before as generic products reach 85% market penetration on average around the world, according to research consultancy Kleffmann Group. With a dearth of newly commercialized generic products and a glut of generic companies selling the same products, there are fewer ways to differentiate products in a world where price has become consistent among manufacturers, import/export companies, and trading houses.
Three key business evolutions for crop protection companies:
- Business partnerships must become more consultative than transactional. Buyers are no longer solely concerned about price outside of large-acre, commoditized chemistries. Biological and specialty products require a more collaborative sales approach that emphasizes long-term collaboration.