Expiring Drug Patents to Drive Prices Down of Medicines
A deluge of expiring drug patents are expected from now till 2016 as reported by AP. When a drug loses patent protection, often for the first six months, only one generic version is on sale. Thus, price decline may not be significant initially. Afterwards, several other generic versions will typically be available in the market, driving prices down dramatically. This generic competition will obliterate sales of brand-name drugs and slash the expenses of patients. Hence, allowing patients to improve their health through regular use of medicines.
EvaluatePharma Ltd., a London research firm, notes that blockbuster medications with about $255 billion in global annual sales are set to go off patent. The next 14 months will bring generic versions of the best-selling drugs and taken by millions everyday in the market. Examples of these drugs include cholesterol fighter Lipitor and blood thinner Plavix.
According to prescription benefit manager, Medco Health Solutions Inc., generic versions of big-selling drugs for blood pressure, asthma, diabetes, depression, high triglycerides, HIV and bipolar disorder also are coming by then. The flood of generics will continue for the next decade or so, as about 120 brand-name prescription drugs lose market exclusivity.
A generic drug is sold or prescribed under the non-proprietary name of its active ingredients or under its chemical name rather than under a brand or trade name. They are said to contain the same active ingredients that their brand name counterparts possess and are tested to assure that they are therapeutically equivalent.