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.
-
Aging: The Overlooked Risk FactorSponsored Elder care is a personal and financial vulnerability many people fail to plan for.
-
AI vs the Stock Market: How Did Alphabet, Nike and Industrial Stocks Perform in June?AI is a new tool to help investors analyze data, but can it beat the stock market? Here's how a chatbot's stock picks fared in June.
-
Blue Collar Workers Add AI to Their ToolboxesThe Kiplinger Letter AI can’t fix a leak or install lighting, but more and more tradespeople are adopting artificial intelligence for back-office work and other tasks.
-
AI Goes To SchoolThe Kiplinger Letter Artificial intelligence is rapidly heading to K-12 classrooms nationwide. Expect tech companies to cash in on the fast-emerging trend.
-
The New AI Agents Will Tackle Your To-Do ListThe Kiplinger Letter Autonomous AI agents “see” your computer screen, then complete a task, from buying a concert ticket to organizing email. This opens up a world of possibilities.
-
AI’s Medical RevolutionThe Kiplinger Letter Medicine is a field ripe for finding both exciting and practical uses for AI. The tech is already being used by doctors and researchers.
-
The Economic Impact of the US-China Trade WarThe Letter The US-China trade war will impact US consumers and business. The decoupling process could be messy.
-
AI Heads to WashingtonThe Kiplinger Letter There’s big opportunity for AI tools that analyze MRIs and other medical images. But also big challenges that clinicians and companies will have to overcome.
-
The AI Doctor Coming to Read Your Test ResultsThe Kiplinger Letter There’s big opportunity for AI tools that analyze CAT scans, MRIs and other medical images. But there are also big challenges that human clinicians and tech companies will have to overcome.
-
The New Space Age Takes OffThe Kiplinger Letter From fast broadband to SOS texting, space has never been more embedded in peoples’ lives. The future is even more exciting for rockets, satellites and emerging space tech.
