Posted on 05/15/2011 5:48:57 PM PDT by Graybeard58
Lipitor. Actos. Plavix. These are some of the most-prescribed medicines in the U.S., drugs that are so commonplace they are responsible for a huge chunk of the $300 billion spent on brand-name pharmaceuticals each year.
That is about to change as patents on these pricey pills begin to expire, opening the door for generic competition. And that can translate to savings of up to 90 percent, analysts say, making these drugs affordable to more consumers.
Americans will see cheaper copies of some of the biggest drug names starting this fall. Out-of-pocket costs of the generic form of Lipitor, a widely used and advertised cholesterol drug that loses its patent protection in November, will be reduced to as little as $4 for a month's supply. Even for a person with health insurance, Lipitor can cost $25 to $40 -- or more -- each month.
In the next two years, six of the nation's 10 best-selling drugs are expected to be available in generic form. They include Lipitor, which lowers levels of the bad (LDL) cholesterol; Actos, a blockbuster diabetes drug; and Plavix, which reduces the risk of deadly blood clots after surgery.
"The human scale of all this is unprecedented," said Michael Kleinrock, director of research development at IMS Health, a market research and information firm that tracks the health care industry. "For most of the last two decades, many of the most popular drugs were for large populations in the primary setting. When those drugs go off patent and become available, there are going to be big savings coming for patients."
More than $100 billion in annual brand-name drug sales will be at risk for generic competition from 2011 to 2015. That's about one-third of the annual spending on all prescription drugs in the U.S., according to IMS data.
Pharmacies and health insurance plans are expected to step up marketing and education to get consumers to use generics.
"You are going to see more and more people being pushed to generics," said Linda Bannister, health care analyst with Edward Jones in St. Louis. "For patients, I see a big dividend for the research the drug companies put in in the late 1980s and 1990s."
As for consumers' concerns about the effectiveness of generic drugs, doctors say the cheaper versions have the same active ingredients as their brand-name counterparts. Also, the Food and Drug Administration requires that these cheaper copies be as safe and effective as the patented versions.
The primary reason generics are cheaper is because the companies that make them don't have the expenses tied to bringing a drug to the market.
"The medical profession has struggled to dispel the perception that generics are somehow inferior, but it is simply bogus," said Dr. Caleb Alexander, an internist at the University of Chicago Medical Center and a pharmacoepidemiologist who studies the quality of prescription drugs as well as pharmaceutical cost issues. "(Generics) are the same."
Many of the brand-name drugs were launched in the 1990s, a golden age for the pharmaceutical industry when breakthrough treatments for some of the most chronic health conditions such as diabetes, high cholesterol and hypertension became available to the masses.
They have been credited with helping to reduce deaths as well as the need for expensive surgeries. The volume of open-heart surgery, for example, has dropped nationally since 1998, according to statistics from the American Heart Association.
But these expensive medications also have been blamed for a spike in health care costs. And their price has made them prohibitive for many Americans.
Certain brands cost $3 to $5 a pill, which quickly adds up for consumers who need to take them daily to manage their health conditions.
Pharmaceutical companies say they have to charge a premium to recoup their investment for research and development, which can reach into the hundreds of millions of dollars for just one drug. Patents are granted for 20 years, but drug companies have argued they have 10 years or less to market the product exclusively due to the many years it takes to discover, research and develop the drug before it is approved by the FDA.
The biggest impact for consumers will come from generic competition of Pfizer Inc.'s Lipitor, which has grown to be the top-selling drug of all time, generating more than $9 billion in U.S. sales at one point in its history. Competition from other statin drugs has started to make a dent in Lipitor's sales, which slowed to about $7 billion last year — an early sign of what Pfizer faces when its drug loses patent protection in November.
Analysts note that drug companies typically find ways to fend off generic competition for as long as possible. There's the widespread tactic of creating "patent extenders," which involves slightly altering a brand-name drug by developing extended-release versions or prescriptions that require different dosages.
Some also try to protect their patents by taking makers of generic drugs to court, which can delay the release of cheaper copies by months. "The dates are a movable feast because there is always patent litigation, so the dates (of patent expiration) may move a little bit," Kleinrock said.
Generics for Plavix and Lipitor would be welcome news for me since I take these drugs. I think the co-payment for Plavix last month was around $75 for 3 months. A generic would be far less.
Went to get a antibiotic prescription for my niece, “You saved $150” or so was on the receipt. Luckily the “generic” box was checked and I paid a whooping $4.
BS —My generic hormone med that was 18.00 for 90 day online
is now 55.00 because they say it is an ‘expensive generic’ now.
Look for some ‘expensive generics’ in your future.
The problem is, with Bamnation Care even though the drug is generic, if you are not worthy........
Maybe Crestor and Norvasc as well?
I’m getting screwed. Paying over $100/mo for Lipitor.
Generic Lipitor.....Yay! And they just came out with a generic for my 24 hour antihistamine (Xyzal). But the big one will be a generic for Androgel....brand name NOT CHEAP.
I’m on Lipitor. My insurance coverage for medications changed this year, so instead of paying $40 for brand-name and $10 for generic every three months, I now pay $75 for brand-name and $5 for generic. Quite a difference.
Just get your doc to prescribe actual testosterone cream—you can get it at a compounding pharmacy. Much cheaper than androgel.
I also take Plavix. I’ll wait and see if 92.50 for 90 day goes down any.
My insurance will probably put it in the ‘expensive generic’ tier.
I was on Crestor after my surgery and my numbers were excellent but
I went to Simvastatin, a Zocor generic at 10.00 for 90 day compared to Crestor which was also 92.50 for 90 day. Will see if my numbers are still above average next test.
Viagra goes generic next spring.
I guess I’m in good shape, my generics cost $5 or less and name brands are $15 and no yearly deductible. My adult son’s plan is the same charges but he has a fairly big deductible every year. I forget how much he said it was but $500 comes to mind. Sounds like a lot to me.
While pharmas may have enjoyed a "golden age" in the 1990's, they'll be getting the big squeeze under Obamacare. Already, the exclusivity for patents on biologic medicines--which had been initially "bargained" at 12 years--is being questioned. The Obama administration is now considering a lesser amount, perhaps as little as 8 years.
As someone involved in the pharmaceutical business, I encourage consumers to enjoy their "relief" from large prescription costs by purchasing generics, but I would also warn there could come a day where we'll see fewer cutting-edge pharmaceuticals, as there simply won't be enough research dollars to pay for clinical trials and drug development.
My concern too.
I was taking Pravastatin which is cheaper than Lipitor, but for some reason, the Lipitor worked better. I thought they would function almost the same, but apparently not.
Another thing is be sure where your drugs come from. I also take generic OTC Omeprazole at Target for my tummy. From India. So far so good.
Before medicare I was ordering from Drugstore.com and getting same med from different countries each time. Never sure what I was getting.
Yeah, I know. ObamaCare is going to screw everything up.
Drug companies spend more on advertising than they do on R&D
I don’t have the “expensive tier” thing with my plan....yet. I’m sure it’s coming though. Bastids!
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