This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

10 Popular Drugs Set to Lose Their Patents

By Melly Alazraki, DailyFinance

NEW YORK ( DailyFinance) -- The imminent arrival of the dreaded "patent cliff" has been haunting the pharmaceutical industry for years, and it's finally here. With patents on many blockbuster drugs about to expire, an estimated $250 billion in sales are at risk between now and 2015, according to data from EvaluatePharma.

Once drugs lose patent protection, lower-price generics quickly siphon off as much as 90% of their sales. For consumers, the savings from generics can be substantial, as this price table of the top 25 brand-name drugs with available generic counterparts highlights. According to pharmaceutical analyst Sophia Snyder at research firm IBISWorld, generics now average about 30% of the price of the brand-name originals.

In 2010, the pharmaceutical industry had sales of $860 billion worldwide, up 3% from 2009. Just 133 blockbuster drugs accounted for $295 billion of those sales -- about 34% of the market -- according to IBISWorld. Of those blockbusters, 13 are set to lose patent protection through 2013.
More from DailyFinance
Spring Is in the Air for Retail M&A
Not Enough iPad 2 Units to Go Around?
Leaping Gas Prices Have Drivers Hitting the Brakes

Although the generic industry will benefit in the short term, it will also see a slowdown in revenue growth after 2015 because fewer blockbusters will be coming off patent for them to replicate, IBISWorld said in a recent report.

According to IBISWorld, the top five best-sellers set to lose patent protection in each of the next two years are:
Patent Expiring in 2011 Condition Company 2010 U.S. Sales
Lipitor cholesterol Pfizer $5,329,000,000
Zyprexa antipsychotic Eli Lily $2,496,000,000
Levaquin antibiotics Johnson & Johnson $1,312,000,000
Concerta ADHD/ADD Johnson & Johnson $929,000,000
Protonix antacid Pfizer $690,000,000

Patent Expiring in 2012 Condition Company 2010 U.S. Sales
Plavix anti-platelet Bristol-Myers Squibb /Sanofi-Aventis $6,154,000,000
Seroquel antipsychotic AstraZeneca $3,747,000,000
Singulair asthma Merck $3,224,000,000
Actos type 2 diabetes Takeda $3,351,000,000
Enbrel arthritis Amgen $3,304,000,000

Cholesterol fighter Lipitor held the title "best-selling drug" for a few years, and has been a major source of income for the world's biggest drug company, Pfizer (PFE). Lipitor (atorvastatin) was released in 1998, and by 2006 it had reached peak sales of $12.9 billion, accounting for 27% of the company's revenue. In 2010, with $10.8 billion in sales, Lipitor still accounted for 15.8% of total revenue, even with the addition of Wyeth's operations.

In 2008, Pfizer reached an agreement with Indian generics manufacturer Ranbaxy Laboratories. Ranbaxy will have a license to sell atorvastatin in the U.S. effective Nov. 30, 2011, and have exclusivity for 180 days before other drugmakers can enter the market. Watson Pharmaceuticals will also introduce a generic for Lipitor.
1 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.74 0.00%
FB $117.58 0.00%
GOOG $693.01 0.00%
TSLA $240.76 0.00%
YHOO $36.60 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs