Costs to drop as many brand-name drugs go generic

John Egan

Millions of Americans are getting a big price break on prescription drugs.

From October 2011 through December 2012, the patents of more than 30 brand-name prescription drugs — including Lipitor, Plavix and Singulair – will expire, according to Excellus Blue Cross Blue Shield and Medco Health Solutions Inc.

How does that affect you? Lower-cost generic versions of these drugs will be available. In 2010, the average generic drug cost $72, according to Wolters Kluwer Pharma Solutions. The average price for a brand-name drug in 2010 was $198.

Lipitor is one of the major brand-name drugs set to go generic in 2011 and 2012.

Translation: Last year, the average big-name drug cost 175 percent more than the average generic.

According to IMS Health figures cited by The Associated Press, average co-payments last year were $6 for generic drugs, compared with $24 for brand-name drugs given preferred status by a health insurance company and $35 for non-preferred brands.

No matter how you slice it, that’s money out of your pocket — but considerably less when you buy a generic equivalent of a drug.

This year, the biggest boon for American consumers will come thanks to cholesterol fighter Lipitor becoming available in generic form. In 2012, two of the most noteworthy drugs going generic are Plavix, a blood thinner, and Singulair, which treats asthma.

In 2010, U.S. sales of Lipitor totaled $7.2 billion, according to IMS Health, making it the most popular brand-name drug in the country. For Plavix, the figure was $6.1 billion. For Singulair, it was $4.1 billion.

A generic drug contains the same active ingredients in the same dosage as a brand-name drug, according to Excellus. All generic drugs are approved by the U.S. Food and Drug Administration.

When a drug loses its patent, that doesn’t mean the brand name disappears altogether. It simply means that consumers can choose between a more expensive brand-name drug and a cheaper generic drug.

Other prescription drugs expected to be available in generic form in 2012 include:

• Seroquel, an antipsychotic. (U.S. sales in 2010: $4.4 billion.)

• Actos, which treats Type 2 diabetes. (U.S. sales in 2010: Nearly $3.5 billion.)

• Lexapro, an antidepressant. (U.S. sales in 2010: $2.8 billion.)