In addition to the patent cliff, it seems like there will be more pressure on prices and profits as we move to a one-size fits all insurance program.
With one stroke of a pen, someone in the government can threaten that Drug XYZ is too expensive and therefore,will no longer be covered by anyone's standard insurance plan. If however, the price can be lowered....
So Big Pharma probably suffers under the cost containment pressures of the new Health Care bill. Short-term, this may seem good but if it plays out this way; R&D will be cut and the drug pipeline will dry up.
You're right, most prescription drugs are generic now, so that bodes well for consumers as it tends to drive the price down. Big Pharma is no longer holding an advantage over those who have to have prescription drugs.
He can get it cheaper now that his company lost the patent!
"I don't think we can save our way out of the enormous challenge we face," he said.
Sounds like he might need an antidepressant!
@Noreen
RE: Cialis. That is too funny.
And another thing on those Cialis ads: no woman feels sexy while she is in the midst of cleaning out the garage. Give me a break!
Maybe later, if her husband does a really nice job on the garage, and she has time for a bubble bath...and some wine. Maybe then. But not when she's covered in dried leaves and spider webs and smelling of WD-40.
In an interview with Bloomberg, John Lechleiter, CEO of Eli Lilly (LLY), says the company must find new treatments and sell more drugs to overcome the revenue decline it will face from losing patent protection on its two top sellers, the antipsychotic Zyprexa and depression treatment Cymbalta.
"I don't think we can save our way out of the enormous challenge we face," he said.
Forest Laboratories' (FRX) first-quarter profits plummeted 40% as its blockbuster antidepressant Lexapro fell off patent. Net income dropped to $192.7 million from $322.5 million, on a 7% decline in revenue to $1.06 billion. Lexapro sales dropped 40% to $355.8 million--and the drug had only faced generic competition for part of the quarter.
But here's the weird thing. Analysts were expecting worse --so the company's shares actually rose after the announcement
If I were the pediatrician, I'd send the parents of those kids to the time out room. Who lets their kids watch that much TV? And who doesn't flip out at a kid for asking for a prescription by name? But it is what it is...
@Noreen - when the kids ask the pediatrician for the "purple pill" the kids are watching too much TV.
And if I was the pediatricain, I'd have some purple placebos handy.
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