Generic copies of the two best-selling drugs, Lipitor and Plavix, will reach pharmacy shelves this year, providing less-expensive alternatives to lowering cholesterol and preventing blood clots.
The drugs are among six blockbusters that will lose patent protection this year. The others are Levaquin, an antibiotic; Taxotere, a cancer drug; Concerta, for attention deficit hyperactivity disorder; and Zyprexa, for treatment of schizophrenia.
Lipitor and Plavix account for $13.1 billion in combined annual sales.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The availability of generic equivalents will help users and employers save money. In 2009, the average retail price was 75% lower than the price of name-brand drugs. In addition to the lower cost, many prescription drug plans require lower copays for generics than for brand-name medications.
Generic drugs claimed about 75% of the market in 2009. The share is expected to reach 85% by 2014.
Despite generic availability of some monster drugs, you should expect a 5% increase in overall drug costs in 2011, the third straight year of single-digit increases. Part of the reason is that generics will be phased in. The Lipitor equivalent, for example, won’t be available until late fall.
The generics shouldn’t have much impact on drug company stock prices when they hit the market. The coming end of patent protection has been known well in advance, so any adjustment is likely already factored into share prices.
-
What to Expect From Bitcoin and Other Cryptocurrencies in 2025With help from Donald Trump, the cryptocurrency industry is expanding rapidly. Here's what to expect from bitcoin in 2025.
-
What's the Key to a Happy Retirement for a Couple?Retired couples spend lots of time together. Without the distractions of work and raising kids, miscommunication can cause trouble. Here's a way to avoid that.
-
Europe Faces Economic and Political Headwinds Next YearThe Letter Challenges for Europe: Potential tariffs, high energy prices and more competition from China will weigh on the bloc in 2025.
-
Don't Sleep on Japan's Economic TransformationThe Letter After almost three lost decades, Japan — one of the world's biggest economies — is finally showing signs of life.
-
Kiplinger Outlook: Telecom Companies Brace for Tough TimesThe Letter The telecom industry is entering a new era that threatens profitability. But the coming Trump administration will make it easier for the major players to adjust.
-
Start-ups Trying to (Profitably) Solve the World’s Hardest ProblemsThe Letter More investors are interested in companies working on breakthrough science to tackle huge societal challenges. The field of deep tech has major tailwinds, too.
-
Will lower mortgage rates bring relief to the housing market?The Kiplinger Letter As mortgage rates slowly come down here's what to expect in the housing market over the next year or so.
-
The Big Questions for AR’s FutureThe Letter As Meta shows off a flashy AR prototype, Microsoft quietly stops supporting its own AR headset. The two companies highlight the promise and peril of AR.
-
China's Economy Faces Darkening OutlookThe Letter What the slowdown in China means for U.S. businesses.
-
AI Start-ups Keep Scoring Huge SumsThe Kiplinger Letter Investors continue to make bigger bets on artificial intelligence start-ups, even for small teams with no revenue. Some backers think a startling tech breakthrough is near.
