This and last year were big years for the so called "patent cliff", where drug makers started to face generic competition on some of their biggest money makers.This included some of the biggest drugs in history, including Lipitor and Plavix.
Chasing blockbusters is dangerous. AstraZeneca, which has focused on such drugs, recently saw its CEO depart as earnings plunged.
Only a fraction of drugs succeed, but a look at how much a blockbuster is worth makes it clear why companies continue to chase them.
Here are some of the key facts:
- The top 20 drugs in the United States accounted for $319.9 billion in sales in 2011.
- The most lucrative drugs of the top ten were those that attempt to prevent heart disease, followed by those that treat depression.
- AstraZeneca has the most drugs in the top ten with three, followed by Bristol-Myers Squibb with two.
- Four of the top ten drugs have recently lost patent protection in the United States, with another joining later this year.
Lipitor - $7.7 billion
Company:
Pfizer
US sales in 2011:
$7.7 billion
What does it do:
Lipitor (atorvastatin) lowers LDLs or "bad cholesterol", reducing the risk of heart attack and stroke.
Important dates:
Approved December, 1996. US patent expired November, 2011.
The future:
Pfizer made an effort to keep up sales against generics by aggressively advertising the drug even after the patent expired.. It quietly halted the effort earlier this year. Lipitor sales plunged 42 percent in the first quarter this year.
Sources: IMS Health, Pfizer, US Patent Office
Plavix - $6.8 billion
Company:
Bristol-Myers Squibb/Sanofi Aventis
US Sales in 2011:
$6.8 billion
What does it do:
Plavix (clopidogrel) is an anti platelet agent used to prevent clots, helping prevent heart attacks and strokes.
Important dates:
Approved November, 1997. US patent expired May, 2012.
The future:
Several generic versions of the drug were approved on May 17th and are now on sale. Both Bristol Myers Squibb and Sanofi have aggressively pursued acquisitions and new research to make up for the loss of their biggest money maker.
Sources: IMS Health, US Patent Office, Reuters
Nexium - $6.2 billion
Company:
AstraZeneca
US Sales in 2011:
$6.2 billion
What does it do:
Nexium (esomeprazole) treats acid reflux disease by reducing the amount of acid in the stomach.
Important dates:
Approved March, 2000. US patent expires May, 2014.
The future:
Generic drugmaker Teva won't enter the US market until 2014, but there is already generic competition in Europe. Declining sales have significantly impacted earnings.
Sources: IMS Health, US Patent Office
See the rest of the story at Business Insider
Please follow Money Game on Twitter and Facebook.