Introduction

The generics market has traditionally focused on producing replica versions of branded drugs that have lost their exclusivity. These drugs, referred to as simple generics, contain the same active ingredients as the original drugs and demonstrate equivalence in safety, route of administration, efficacy and quality. Notably, they cost an estimated 80 to 85% less than their branded counterparts – offering significant benefits in terms of affordability to patients and the healthcare industry. While simple generics have transformed the pharmaceutical market through the availability of equivalent therapeutic drug products at a lower cost, their generic properties limit their ability to advance medical innovation.

Generic cost and estimated 80-85% less than their branded counterparts.

To overcome this barrier, a new wave of more complicated and advanced formulations that go beyond simply copying the original drug have emerged. These complex generics (also known as super generics or hybrid medicines) are more challenging, time-consuming and costly to develop. That said, they offer pharmaceutical companies real opportunity to disrupt the market with superior drug products that better address patients’ unmet needs. For instance, drug developers can create complex generics that have a faster onset of effects, fewer adverse events or are easier to administer.

In this whitepaper, we take a deep dive into the complex generics category, highlighting the market opportunity, benefits for patient-centricity, illustrated with a case study, and answers to the most frequently asked questions. Read on to discover how you can capitalize on this growing market with top tips and expert insights from Synergice, a Strides Pharma initiative and pharmaceutical network specializing in developing and manufacturing quality generic medications across various therapeutic areas. We are a single platform that closes the gaps between product development and patients by helping our partners get medicines to market faster without compromising on quality. With multi-disciplinary expertise, global reach and a unified contract structure, Synergice is dedicated to expanding healthcare access worldwide.

What is a complex generic drug product?

A complex generic is an innovative drug product that, while still considered a generic, possesses inherently complex characteristics.

According to the United States (US) Food and Drug Administration (FDA), complex generics comprise of one or more of the following

• Complex active ingredients:includes peptides and polymeric compounds, as well as complex mixtures of active pharmaceutical
ingredients (APIs) or naturally sourced ingredients. An API could be deemed complex if its chemical formula consists of repeating structural units, or a range of molecular weights.

• Complex routes of delivery:primarily refers to locally acting drugs, including dermatological products, ophthalmological formulations and otic dosage forms, prepared as suspensions, emulsions or gels.

• Complex formulations:involves advanced drug delivery systems, like liposomes or colloids.

• Complex dosage forms:encompasses all non-solution products for routes other than oral administration, including complex drug-device combination products. Examples range from transdermals and metered dose inhalers to extended-release injectables.

Any drug product with a complex dosage form and/or formulation – such as parenteral liposomes, long-acting polymeric microspheres and semisolids– are considered complex drug products. Additionally, drug products where the approval pathway is uncertain or alternative approaches might benefit from early scientific engagement are also categorized as complex generics. While these formulations can be challenging to develop and even small changes in the manufacturing process can lead to variations in the final drug product’s characteristics and performance, they offer significant advantages. By embracing the complexity of these formulations, pharmaceutical brands can create more sophisticated, effective and patient-friendly medications – ultimately contributing to improved health outcomes.

What is a complex drug-device combination product?

A complex drug-device combination product involves a drug component that is either integrated into, packaged with, or cross-labeled for use with a specific device.

The design of this device may impact how the drug is delivered or absorbed, such as if the device controls the dosage. In addition, the device may have special usage requirements. For instance, it might require healthcare professionals to be trained to use the device
or possess the ability to track doses electronically.

Examples of complex drug-device combination products include:

• Pre-filled syringes with a higher level of complexity, such as a dual chamber syringe or multi-dose pen injector

• Pre-filled auto-injector products for injectable formulations

• Orally inhaled and nasal drug products, such as metered-dose inhalers, dry powder inhalers and metered nasal spray products

• Inhalation products which require use with a specific delivery system

• Iontophoretic transdermal products

• Transdermal and topical delivery systems (TDS) – historically referred to as patches

• Metered-dose pumps for topical and transdermal formulations

• Implants with non-biodegradable device parts

• Intrauterine systems

• Electronic device systems (tracking dosage) including both software and hardware

• Vaginal systems

Complex drug products containing nanomaterials

Drug products containing nanomaterials broadly refer to formulations that incorporate deliberately manipulated materials in the nanoscale range of 1 to 100 nanometers (nm). But they can extend up to 1000 nm if they exhibit unique properties or phenomena attributed to their nano-dimensions.

This can include physical, chemical or biological effects. The majority of drug products containing nanomaterials are designed for parenteral use, where the active ingredient is either encapsulated in a carrier or associated in a complex form. After parenteral administration, the active ingredient may appear in various forms at different sites in the body.

Parenteral drugs containing nanomaterials are considered complex drug products and include:

• Liposome formulations in the submicron range (e.g. doxorubicin, daunorubicin, amphotericin B, verteporfin, vincristine sulfate and irinotecan hydrochloride)

• Iron complex formulations (e.g. ferric oxyhydroxide)

• Nano-suspensions (e.g. paclitaxel)

• Self-assembling nanotubes (e.g. lanreotide acetate)

• Nano-emulsions (e.g. cyclosporine and difluprednate)

• Lipid complex drugs (e.g. amphotericin B lipid complex)

• Lipid nanoparticles (e.g. patisiran).

Understanding complex generics in Europe

In Europe, complex generics are referred to as hybrid medicines by the European Medicines Agency (EMA). These are defined as products whose authorization depends partly on the results of tests on the reference medicine and partly on new data from clinical trials.3 For instance, if a manufacturer develops a generic medicine that is based on a reference medicine, but it has a different strength, route of administration or a slightly different indication from the reference drug, it is classed as a hybrid medicine.

A market primed for growth

The complex generics market has experienced robust growth in recent years – reaching USD 84 billion in 2024–but it is just warming up.

Every year, the FDA approves or tentatively approves hundreds of generic drug applications, including dozens of complex generics. Fueled by their increasing popularity and advancements in pharmaceutical manufacturing, the market is predicted to increase annually by an 8% compound growth rate from 2024 to 2035, reaching a staggering USD 200 billion.

To capitalize on this growing market opportunity, drug companies should focus on developing complex generics that better address patients’ unmet needs. This will allow them to achieve market differentiation, reach higher profit margins and above all, elevate patient health.

Riding the wave of the upcoming patent cliff

The impending wave of patent expirations in the pharmaceutical market will bring fierce competition for simple generics manufacturers, as they race to launch replica versions of branded drugs. Complex generics, on the other hand, face significantly less competition, and therefore present a golden opportunity for pharmaceutical companies to successfully launch superior generics that stand out by offering enhanced therapeutic value.

The benefits of complex generics for patients

Complex generics can help drug developers enhance patient-centricity by addressing unmet needs.

For instance, they could enable the development of more patient-friendly dosage formats of difficult-to-administer drugs, such as oral dosage versions of injectables.

Improving the palatability of bitter tasting drugs through taste modulation techniques or adapting formulations or dosage formats to reduce adverse events could also become possible. They may be able to enhance drug solubility or bioavailability as well – increasing efficacy and reducing the frequency of administration. Moreover, for patients requiring multiple medications, a polypill combining various active ingredients can simplify treatment regimens.

Meanwhile, complex generics present a significant opportunity to better support the aging population and address rising prevalence of chronic diseases. They allow for more tailored and accessible treatments, such as extended-release formulations for chronic pain or combination therapies for cardiovascular diseases, potentially improving outcomes for a broader spectrum of patients. And as a cost-effective alternative to brand-name drugs, complex generics offer financial benefits to healthcare systems and increase access to advanced treatments for more patients.

Evidencing the rise of complex generics

Through our platform, Synergice, we connect a number of separate entities that contribute specialized capabilities – from advanced
formulation technologies to cutting-edge manufacturing expertise – allowing us to offer our partners a comprehensive range of high-
quality niche and complex generics.

Additionally, by fostering a common approach to manufacturing, collaboration and knowledge-sharing, we can also accelerate product development and streamline the process of bringing new patient-friendly complex generics to market.

Here's how the Synergice platform could play a crucial role in your next development:

• Facilitate rapid knowledge exchange between formulation experts across its partner entities

• Provide access to cutting-edge technologies and equipment

• Enable streamlined regulatory support for faster market entry.

Let’s explore how Strides Pharma, one of our platform partners, co-developed an innovative antibiotic solution:

Enhancing patient convenience: Antibiotic oral solution case study

The existing formulation of a particular antibiotic was only available in powder format, requiring patients to measure and mix the powder with a solution before administration. This had significant negative implications for treatment adherence, as the medication was not only cumbersome and time-consuming to mix, but also introduced significant risk of inaccurate dosing.

Leveraging its expertise in niche, difficult-to-develop products, Strides aimed to create an oral dosage version of the antibiotic. This involved addressing various technical challenges, including how to effectively solubilize the drug while ensuring stability, efficacy and safety. To overcome these hurdles, Strides utilized proprietary technology to solubilize the drug.

The result?

A safe, effective and stable oral solution with significantly enhanced organoleptic properties compared to the marketed product.
This clear and flavorless, ready-to-use solution eliminates the need for reconstitution by the patient or pharmacist, ensures dosing consistency and improves adherence towards treatment regimens.

Navigating the complex generics landscape:

Your questions answered

While complex generics present an exciting opportunity for drug companies to innovate in the pharmaceutical market, there are several barriers of which to be aware.

These hurdles stem from the inherent complexity of developing ‘complex’ formulations, which require significantly more specialized expertise than simple generics. For instance, regulatory pathways are longer and harder to navigate, costs are higher, additional quality control measures are required, and IP challenges can add further complications. Despite these challenges, the potential for market differentiation, improved patient outcomes and reduced competition makes complex generics an exciting opportunity to develop next-generation pharmaceuticals.

To help navigate this evolving landscape and better understand how you can harness the potential of complex generics, we’ve answered the most frequently asked questions around their development and commercialization –covering everything from cost implications to technical expertise and regulatory requirements.

Q. Does it cost more to create a complex generic?

While the development of complex generics is typically more expensive than simple generics due to the higher research, development, manufacturing and regulatory costs, the potential for greater profitability exists. This is because they face less market competition and allow for differentiation, which often leads to higher price margins compared to simple generics.

Q. Do I need to invest in more technical expertise and manufacturing?

Complex generics require more specialist expertise and technical manufacturing compared to traditional simple generics. Due to their complex nature, even small changes in the manufacturing process can lead to significant differences in how the drug is structured, how it behaves, and how it’s released in the body. This is why complex generics are more challenging to develop than simple generics – it’s not just about matching the chemical composition of the branded drug, but also replicating the intricacies of the manufacturing process that gives the drug its unique properties.

Q. How do I ensure robust quality of my complex generic?

Additional quality control measures are required, although the supplementary tests needed will depend on the individual drug product and be established during the development process. For instance, when developing a complex generic in buccal spray form, additional palatability tests may be needed to ensure the drug product does not have an unpleasant taste. By integrating technology throughout the manufacturing process, quality control can be strengthened at every stage– from research and development to the final product.

Q. Are the regulatory requirements different for complex generics compared to simple generics?

Yes, the regulatory pathway for complex generics is more challenging and intricate compared to simple generics. In the US, for example, the FDA classifies complex generics under a New Drug Application (NDA), whereas simple generics typically fall under an Abbreviated New Drug Application (ANDA). Additionally, there is less regulatory guidance available for complex generics, making their development more demanding. Engaging with regulatory bodies early in the product development process is therefore crucial. A detailed drug product protocol should be submitted as soon as a concept or design is ready, outlining the product’s advantages, potential challenges and strategies to overcome them, as well as how the product’s safety and efficacy will be demonstrated. Collaborating with a partner experienced in complex generics and regulatory navigation can streamline this process across global markets.

Regulatory pathways for launching complex generics

The regulatory pathway for launching complex generics in the US is known as the FDA 505(b) (2) NDA. This requires drug developers to provide full reports for investigations regarding the safety and effectiveness of the proposed new drug product, where at least some of the information for approval comes from previously approved NDAs. This pathway allows for flexibility in the characteristics of the proposed product without having to conduct studies on what is already known about the drug.

In Europe, drug developers must apply for a hybrid medicinal product application to launch a complex generic. Similar to the US, the authorization of these hybrid medicines depends partly on the results of tests from a reference medicine and partly on new data.

Q. Do I need to collect new clinical data for my complex generic?

This will depend on the complex generic being developed. Generally, if the safety and efficacy of the drug molecule have already been established, then it is possible to adopt the existing clinical data from the patented drug product. In the US, a complex drug product that falls within the FDA’s categories of a complex formulation, complex dosage form or complex route of delivery will require additional in vitro physical characterization studies and in vivo bioequivalence studies. Whereas a complex generic that is classed as having complex ingredients will require additional clinical studies to establish the safety and efficacy profile of the drug product.

Q. Do complex generics take longer to get to market?

Developing complex generics is undoubtedly a longer process than simple generics for a combination of reasons. Complex formulations may require advanced technology and manufacturing that takes more time to optimize. Moreover, the regulatory approval time can be significantly longer than that of traditional generics. Demonstrating the bioequivalence of a complex generic could also take an extended period of time if additional clinical trials or studies are required. As such, finding a partner that can help streamline the development process is critical to getting to market faster.

Q. What intellectual property (IP) challenges exist in complex generics development?

Several IP challenges can make the development and launch of complex generics a highly strategic and legally intricate process. Take patent thicketing as an example. This occurs when drug companies stack overlapping drug patents on top of each other – making the IP landscape difficult to navigate. In addition, patents on complex formulation or drug delivery methods can often remain in place even after the active ingredient’s patent expires, while drug-device combination products may have specific device patents that add further complication. These challenges can increase the complexity, cost and time required to bring complex generics to market.
Despite these IP-related challenges, complex generics can be granted their own market exclusivity rights under the FDA 505(b)(2) NDA pathway, ranging from three to seven years. This is significantly more than a simple generic, which is only granted up to 180 days.

Finding the whitespace in the complex generics market

While the complex generics category is primed for significant growth, finding the most prosperous opportunities within this market can be challenging. To spark innovation, here are three areas which bear significant promise:

1. Anti-viral drugs – the world is experiencing an increasing prevalence of viral diseases, leading to growing demand for cost-effective generic versions of anti-viral drugs, especially in developing countries. As such, the generic anti-viral drugs segment is ripe with opportunity–but highly competitive. Complex generics could be a way into the anti-viral segment, offering a chance for differentiation.

2. Novel dosage forms– enhancing an existing formulation by altering its release profile or delivery method through novel technologies can lead to the creation of unique formulations that are more widely accepted by patients.

3. Personalized medicine– complex generics could enable drug developers to tap into the personalized medicine trend. For instance, they can create dosage forms tailored to certain patient groups, such as orally disintegrating tablets (ODTs) for pediatric and elderly patients, or polypills for those managing multiple conditions.

Why partner with Synergice ?

We have found a way to open up more opportunities for our customers in the pharmaceutical market. A way that gives drug developers quick and easy access to high-quality complex generics that exceed patients’ expectations.

Our platform provides expert services at every stage of the drug development pipeline, accelerating your next breakthrough product
from concept to delivery.

What makes us stand out?

• Fully integrated digitalized platform

• Extensive product portfolio across multiple therapeutic areas

• Multi-disciplinary expertise

• Unified contract structure

• Network with global reach and scale

We bring partners, products and opportunities together to create more possibilities for you.

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