Lipitor, Plavix Among Big-Name Drugs Falling Off The 'Patent Cliff'
Some of the most popular and expensive brand-name drugs are about to go generic
By Fred Mogul, WNYC
File photo by Jessica Marcy/KHN
Oct. 24, 2011 - Take
Lipitor, for example. In November, the heart drug comes off-patent — and by next June, there are likely to be multiple generic versions.
With almost $11 billion in sales last year, it's the largest blockbuster to fall off what analysts call the "patent
cliff." And it's just one of dozens of popular high-end pharmaceuticals whose prices are expected to plummet in the coming years, including
Plavix (for heart disease),
Seroquel (used to treat depression) and
(for digestive problems.)
This story is part of a
reporting partnership among NPR, Kaiser Health News and NPR member stations.
Patients often pay more for name-brand drugs, even when they're covered by insurance. Sometimes they have no choice
because — unlike Lipitor — many drugs don't yet have generic competition.
Howard Weintraub, a cardiologist at New York University, says many patients on those drugs come in and beg for free samples. Others simply
don't fill their prescriptions — or they do, but then try to stretch their resources by taking the pricey pills less often than they're
"People come in with their blood pressure not as well controlled, or they come in and their cholesterol's all of a sudden
mysteriously higher. And you realize, OK, the medicine hasn't stopped working, but you also realize the medicine doesn't work when it's still
in the bottle," he says.
Generics already represent
70 to 80 percent of drug sales — a dominance expected to grow in the future. Michael Kleinrock, of marketing research firm
says patent expirations over the last half-decade are one of the main reasons why Medicare spent $50 billion less than federal officials
projected five years earlier.
FDA approves Zyprexa:
first generic to treat schizophrenia, bipolar disorder
10/24/11 - The U.S. Food and
Drug Administration today approved the first generic versions of Zyprexa (olanzapine tablets) and Zyprexa Zydus (olanzapine orally
disintegrating tablets) to treat schizophrenia and bipolar disorder.
Schizophrenia is a chronic,
severe, and disabling brain disorder. About 1 percent of Americans have this illness. Symptoms people with schizophrenia have include:
hearing voices, believing other people are reading their minds or controlling thoughts, and being suspicious or withdrawn.
Bipolar disorder, also known
as manic-depressive illness, is a brain disorder that causes unusual shifts in mood, energy, activity levels, and the ability to carry
out day-to-day tasks. The symptoms of bipolar disorder include alternating periods of depression and high or irritable mood, increased
activity and restlessness, racing thoughts, talking fast, impulsive behavior, and a decreased need for sleep.
Generic drugs approved by FDA have the same high quality, strength, purity, and stability as
brand-name drugs. The generic manufacturing, packaging, and testing sites must pass the same quality standards as those of brand name
Kleinrock says the average daily cost of drugs dropped one-third from 2005 to 2010, and should drop another
third between now and 2015.
"We're already at reasonably low cost relative to 10 years ago or so," he adds. "That said, there's still actually more
to go, which is excellent for consumers."
The drop in drug costs because of generics is one of the few bright spots in all of American health care. But it isn't
exactly a big bright spot.
"For sure it will be felt, but because the other things are on such a heavy rise, it will only temper where rates are
currently," says Dr. Dennis Liotta, the head of pharmaceutical benefits for Emblem Health, one of New York's largest insurers.
Liotta says the generic drug savings is significant and especially visible to people with limited means and limited
health coverage. But drugs are a relatively small factor in insurance premiums.
And while blockbuster drugs like Lipitor are sunsetting, University of Michigan business school professor
Erik Gordon says pharmaceutical companies are trying to replace them with new, more targeted drugs — like Pfizer's recently approved
"The interesting thing is it will work in only 5 percent of lung cancer patients. The other interesting thing is it's
going to cost $115,000 per year, per patient," Gordon says.
Some analysts say the growing field of costly specialty drugs could undermine the growing savings from generics. But
Gordon says drug companies will still have their work cut out for them. It's getting tougher not only to come up with new drugs, he says, but
also to convince insurers and the government to pay for them — unless they make meaningful improvements in health, at a reasonable cost.
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