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Blockbuster drugs with expiring patents gain new hope

Published in Law and Health Weekly, March 12th, 2005

More than $80 billion in blockbuster drugs will face patent expiration and generic competition by 2008.

One source of hope for pharmaceutical companies lies in the release of extension products. If a company can introduce an extension, such as an extended release version for the drug, 6 months or a year before an existing drug's patent expires, it has a chance to shift patients to the new, patent- protected drug.

If this strategy is successful, the company can retain market share even after generic copies of the original drug reach market. Without a line extension, companies risk losing 80% or greater market share to less expensive generics.

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Source: Law and Health Weekly (2005-03-12)

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