With sales and ANDAs up, pricing becomes hot button for generics

Drug Store News, August 24, 1998 by Melissa C. Popolillo

               Price changes: Brands vs. generics

             % change
             in dollar % change Real
             sales     in price growth
Total market 12.6%      2.5%    10.1%
Brands       13.9       4.3      9.6
Generics      4.7      -7.6     12.3


Source: The Plymouth Group, IMS America Ltd.


                  Brands dominate market share

                  $ sales    % of
                 billions $ sales % change
Generic products     $5.8     10%  4.9%
Brand products       52.3     90  14.0


Source: The Plymouth Group, IMS America Ltd.



              Generics share of total prescriptions

82.4 33.7 33.9 36.0 40.4 41.6 42.1
1991 1992 1993 1994 1995 1996 1997


Source: FDA Office of Generic Drugs


          Retail brand and generics pricing and growth

10.1                13 13.9 3.6                3.7 4.3
Brand dollar growth         Brand price change
1995


10.1                6.6               9.3  9.6
Brand dollar growth Brand real growth
1995                                  1996


10.1                17.8                  1.9  4.7
Brand dollar growth Generic dollar growth
1995                                      1997


10.1                -9.3                 -12.7 -7.6
Brand dollar growth Generic price change
1995


10.1                26.8                14.6 12.3
Brand dollar growth Generic real growth
1995


Source: FDA Office of Generic Drugs


                Abbreviated new drug applications
                         ANDA approvals

188  229  249  219  302  351  431
1991 1992 1993 1994 1995 1996 1997


Source: FDA Office of Generic Drugs


        Retail performance: Generics vs. [branded.sup.*]

                                                Drug
No. of phamacies                              19,119
Pharmacy sales in billions                     $34.9
Avg. no. of prescriptions
per day, per store                               161
% generic                                        50%
% branded                                        50%


                                          Food  Mass
No. of phamacies                         6,293 4,914
Pharmacy sales in billions                $8.4  $9.2
Avg. no. of prescriptions
per day, per store                         149   172
% generic                                  47%   59%
% branded                                  53%   41%


(*.)For 1997
Sources: Drug Store News Chain Store Guides Information Services
NACDS



             Leading generics therapeutic categories

                                    1997
                                 $ sales  1997    $ sales
                                millions % share % change
1. Antibiotics, broad
 and medium spectrum              $652.5   8.3%      -14%
2. Bronchodialators, general       439.5   5.6         7
3. Analgesics, narcotic            425.9   5.4         2
4. Calcium blockers                382.1   4.9       -11
5. Systemic anti-arthritis         356.9   4.6        -9
6. Anti-ulcerants                  338.7   4.3       165
7. Adrenergic blockers             325.4   4.2       -13
8. Cytostatics                     260.1   3.3        10
9. Corticoids, plain               251.7   3.2        16
10. Seizure disorders              247.5   3.2       154
11. Diuretics, non-injectible      196.5   2.5        -7
12. Analgesics, non-narcotic       196.2   2.5        73
13. Sex hormones                   191.6   2.4         4
14. Diabetes, oral                 187.1   2.4       -20
15. Antidepressants                160.1   2.0        -6
Total generics sales             7,835.3   9.6         6

Source: IMS Health




                 Leading generics manufacturers

Manufacturer                197 $ sales    1997 $ sales
                               millions % share % change
1. Apothecon                     $845.3   10.8%    -6%
2. Mylan                          588.6    7.5     27
3. Abbott Hospital Products       662.9    7.1     28
4. Teva Pharmaceuticals           525.1    6.7     26
5. Watson Laboratories            384.0    4.9     29
6. Schein Pharmaceuticals         353.6    4.5     -2
7. Geneva Pharmaceuticals         342.3    4.4    -24
8. Roxane                         311.6    4.0     25
9. Zenith Goldline                300.1    3.8    -30
10. Barr Labs                     297.6    3.8     19
11. Novopharm                     229.9    2.9    255
12. Rugby Labs                    215.8    2.8    -19
13. Warrick Pharmaceuticals       201.1    2.6      2
14. Dey Labs Inc.                 192.4    2.5     22
15. Purepac                       174.1    2.2    128
16. Copley Pharmaceuticals        158.9    2.0     -1
17. Lederle Rx                    110.4    1.4    -16
18. Greenstone Ltd.               103.4    1.3     -5
19. Warner-Chilcott                87.9    1.1    -23
20. Qualitest Products             86.1    1.1    -27


Source: IMS Health



             Future generics: Drugs coming off patent

Drug name    Generic name                   Company

Cardizem CD  Diitiazem (1x daily)          Hoechst Marion Roussel
Imdur        Isosorbide monoitrate          Schering-Plough
Hismanal     Astemizole                     Johnson & Johnson
Normodyne    Lavetalol                      Schering-Plough
Tornalate    Bitolterol                     Sanofi Winthrop
Trandate     Labetalol HCI                  Glaxo
Permax       Pergolide mesylate             Eli Lilly
Flumadine    Rimantidine                    Forest
Vancenase    Beclomethasone                 Schering-Plough
Nizoral      Ketaconazole                   Johnson & Johnson
Vanceril     Beclomethasone                 Schering-Plough
Beclovent    Beclomethasone                 Glaxo
Beconase     Beclomethasone                 Glaxo
Vasotec      Enalapril                      Merck
Procardia XL Nifedipine (Alza)              Pfizer
Pepcid       Famotidine                     Merck
Humulin      Human insulin                  Eli Lilly
Glucophage   Metformin                      Bristol-Myers Squibb
BuSpar       Buspirone                      Bristol-Myers Squibb
Sporanox     Itraconazole                   Johnson & Johnson
Lotrisone    Clotrimazole                   Schering-Plough
Neurontin    Gabapentin                     Warner-Lambert
Wellbutrin   Bupropion                      Glaxo
Ziac         Bisoprolol/hydrochlorothiazide American Home Products
Estraderm    Estradiol patch                Novartis
Plendil      Felodipine                     Merck
Cytotec      Misoprostol                    Searle
Terazol      Terconozole                    Johnson & Johnson
Tri-Norinyl  Norethindrone                  Hoffman-LaRoche
Prilosec     Omeprazole (50/50 with Astra)  Merck
Mevacor      Lovastatin                     Merck
Zestril      Lisinirpil                     Zeneca
Prinivil     Lisinopril                     Merck
Ambien       Zolpidem                       Scarle
Accupril     Quinapril                      Warner-Lambert
Stadol Nasal Butorphalnol tartrate          Bristol-Myers Squibb
Eulexin      Flutamide                      Schering-Plough
Serzone      Nefazodone                     Bristol-Myers Squibb
Vantin       Cefpodoxime                    Pharmacia & Upjohn
Diprolene    Betamethasone dipropionate     Schering-Plough
Elocon       Mometasone furoate             Schering-Plough
Augmentin    Amoxicillin                    SmithKline Beecham
Claritin     Loratadine                     Schering-Plough
Axid         Nizatidine                     Eli Lilly
Relafen      Nabumetone                     SmithKline Beecham
Floxin       Ofloxacin                      Johnson & Johnson
Nolvadex     Tamoxifen                      Zeneca
Duricef      Cefadroxil                     Bristol-Myers Squibb
Monopril     Fosinopril                     Bristol-Myers Squibb
Suprax       Cefixime                       American Home Products
Prozac       Fluoxetine                     Eli Lilly
Biaxin       Clarithromycin                 Abbott
Ceftin       Cefuroxime axetil              Glaxo
Cardura      Doxazosin                      Pfizer
Lotensin     Benazepril HCI                 Novartis


Drug name    U.S. patent '96 U.S. sales
             expiration     in millions
Cardizem CD  1998                  $735
Imdur        1998                   131
Hismanal     1998                    91
Normodyne    1998                    53
Tornalate    1998                    25
Trandate     1998                    20
Permax       1998                    14
Flumadine    1998                    15
Vancenase    1999                   214
Nizoral      1999                   132
Vanceril     1999                    96
Beclovent    1999                    54
Beconase     1999                    33
Vasotec      2000                 1,080
Procardia XL 2000                 1,005
Pepcid       2000                   855
Humulin      2000                   564
Glucophage   2000                   331
BuSpar       2000                   321
Sporanox     2000                   280
Lotrisone    2000                   107
Neurontin    2000                   196
Welibutrin   2000                   127
Ziac         2000                    91
Estraderm    2000                    90
Plendil      2000                    75
Cytotec      2000                    68
Terazol      2000                    57
Tri-Norinyl  2000                    10
Prilosec     2001                 1,710
Mevacor      2001                   985
Zestril      2001                   426
Prinivil     2001                   385
Ambien       2001                   299
Accupril     2001                   203
Stadol Nasal 2001                   108
Eulexin      2001                   107
Serzone      2001                    93
Vantin       2001                    70
Diprolene    2001                    60
Elocon       2001                    46
Augmentin    2002                   672
Claritin     2002                   623
Axid         2002                   409
Relafen      2002                   389
Floxin       2002                   181
Nolvadex     2002                   109
Duricef      2002                    95
Monopril     2002                    93
Suprax       2002                    88
Prozac       2003                 1,730
Biaxin       2003                   630
Ceftin       2003                   378
Cardura      2003                   213
Lotensin     2003                   176


Source: IMS America