More than $38 billion worth of drug revenue is
expected to lose patent protection through 2008 and as a result,
consumers will be able to save $20 billion in drug costs. Meanwhile
generic drug companies stand to gain about $8 billion over the next
three to five years according to Casey Alexander, an analyst for
Gilford Securities, Inc.
Drug prices drop about 20 percent during the first
six months after they lose patent protection. The first generic
drug company to file for a generic license is granted first-to-file
production rights for six months. During that time, only the lead
generic maker and the drug maker who held the patent produce the
drug. After the half-year expires, production opens to other generic
makers and the drug's price plummets again.
To read more:
http://money.cnn.com/2005/10/25/news/midcaps/generic/
