Consumers stand to save billions of dollars in prescription drug costs in the next few years as an unprecedented wave of expensive brand-name medications come off patent, facing competition from far-cheaper generic versions.
Four of the nation's 10 best-selling prescription medicines -- treating common ailments ranging from high cholesterol to asthma -- are due to lose patent protection starting this year through 2010. Never have so many branded drugs, with annual sales of as much as $75 billion, lost their patents in so short a time, experts say.
The savings for consumers could be enormous. Unlike hospital or doctor care, which is expensive but paid mostly by health insurance, patients pay a relatively higher share of prescription drug costs out of their own pockets. The high cost of brand-name drugs has driven many Americans to import less-expensive versions from Canada and other nations.
Generics can cost as much as 80% less than their branded versions. General Motors Corp., for example, said employees in its prescription drug plan are paying 90 cents a pill for the generic version of cholesterol-lowering Zocor, which lost its patent last month, compared with as much as $4.50 for the branded version.
Users of rival cholesterol-fighter Lipitor, the nation's top-selling prescription medication whose patent doesn't expire until 2011, could also save by switching to generic Zocor.
The generic versions generally offer no loss in quality and effectiveness, medical experts say.
"For the vast majority of patients, generics work just like the brand drugs," said Debra R. Judelson, a Beverly Hills cardiologist.
Phyllis Gottlieb, one of Judelson's patients, is enjoying significant savings with generics. The 71-year-old retired Westside resident uses five prescription drugs, including medicines for high blood pressure and arthritis. She said she chooses generics whenever possible, and they help keep her monthly prescription tab under $100.
"The price of some brand drugs is absolutely phenomenal," Gottlieb said. "And I am insured. I am paying $50 at the cash register, and someone next to me is paying $200."
Generic drugs have been around for decades. Their share of prescriptions filled has grown steadily over the years, accounting for just over half of all prescription drugs sold today versus a quarter two decades ago. That share could rise beyond 60% by the end of next year, said Ron Fontanetta, a healthcare specialist at Towers Perrin, a human resources consulting firm.
