Barr Laboratories, Inc.
In North America, Barr Laboratories develops and markets
generic pharmaceuticals, the generic equivalent of brand pharmaceuticals that no longer enjoy patent protection,
primarily in the United States (the Company's largest market), with select products also marketed in Canada through
distribution agreements with third parties. For this market, the Company focuses on developing generic products
with one or more characteristics that make it difficult for other competitors to develop competing generics.
The growing need to lower healthcare costs has helped increase
the substitution of lower-cost generic products for higher-cost brand products. From 2000 to 2007, the percentage of
overall prescriptions filled with generic products grew from 43 to 65 percent, and is predicted to continue rising in
the future. The trend is being fueled by a number of factors: an aging population, rising healthcare costs, an increasing
number of brand products losing patent protection, and an escalating number of healthcare providers, insurance companies
and others seeking to control expenses.