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Generic Benchmarking: Brand Erosion at Patent Expiry

CHAPTER 1 EXECUTIVE SUMMARY 4
Scope of the report 4
Key findings 5

CHAPTER 2 OVERVIEW OF BRAND EROSION IN THE SEVEN MAJOR MARKETS 9
Analysis of brand sales and volume erosion in the seven major markets 10
Erosion of standard oral and parenteral formulations at patent expiry in the seven major markets 11
Brand erosion in the US market 15
Brand erosion in the UK 18
Brand erosion in Germany 21
Brand erosion in France 24
Brand erosion in Spain 27
Brand erosion in Italy 31
Brand erosion in Japan 35
Top 10 most eroded brands 38
Omnicef (cefdinir, Abbott) 38
Lamisil (terbinafine, Novartis) 39
Zofran (ondansetron, GlaxoSmithKline) 39
Zyrtec (cetirizine, Pfizer) 40
Camptosar (irinotecan, Pfizer) 40
Mobic (meloxicam, Boehringer Ingelheim) 41
Coreg (carvedilol, GlaxoSmithKline) 41
Kytril (granisetron, Roche) 41
Cerebyx (fosphenytoin, Eisai) 41

CHAPTER 3 OVERVIEW OF PRICE OF GENERICS VERSUS ORIGINAL BRANDS 43
Price of generic drugs in the seven major markets 44
Generics prices in the US 47
Generics prices in the UK 48
Generics prices in Germany 49
Generics prices in France 50
Generics prices in Italy 52
Generics prices in Spain 53
Generics prices in Japan 54

CHAPTER 4 BRAND EROSION BY VALUE 56
Brand erosion by value across the seven major markets 57
Brand erosion by value in the US 58
Brand erosion by value in the UK 59
Brand erosion by value in Germany 61
Brand erosion by value in France 62
Brand erosion by value in Italy 63
Brand erosion by value in Spain 64
Brand erosion by value in Japan 65

CHAPTER 5 BRAND EROSION BY ATC GROUP 66
Overview of ATC classification 67
Brand erosion by ATC group in the US 68
Brand erosion by ATC group in the UK 69
Brand erosion by ATC group in Germany 71
Brand erosion by ATC group in France 73
Brand erosion by ATC group in Italy 75
Brand erosion by ATC group in Spain 76
Brand erosion by ATC group in Japan 78

CHAPTER 6 REFORMUALTIONS - EFFECTIVE PROTECTION AGAINST GENERIC EROSION? 80
Overview of reformulations 81
The effect of generic defense reformulation strategies 81
Focalin XR grew Focalin franchise despite generic competition 84
Coreg CR failed to protect the Coreg franchise from sales erosion 85
Fosamax D did not incentivize enough patients to switch to the follow-on drug 88
Pravachol's loss of sales is due to poor head-to-head studies 89

CHAPTER 7 BIBLIOGRAPHY 91
Publications and online articles 91
Datamonitor resources 92
APPENDIX 93

List of Tables
Table 1: Top 10 most eroded brands after 6 months of generic entry , Q2 2006-Q2 2008 38

List of Figures
Figure 1: Mean branded standard oral drug value ($) and volume (SU) following generic entry between Q2 2006 and Q2 2008 in the seven major markets 11
Figure 2: Incentives for generic prescribing in the US market 12
Figure 3: Mean branded standard oral and parenteral drug value ($) and volume (SU) following generic entry between Q2 2006 and Q2 2008 in the seven major markets 13
Figure 4: Mean brand erosion of oral versus parenteral drugs at patent expiry between Q2 2006 and Q2 2008 in the seven major markets 15
Figure 5: Mean branded standard oral and parenteral drug value ($) and volume (SU) following generic entry between Q2 2006 and Q2 2008 in the US market 16
Figure 6: US sales of branded meloxicam versus generic competition from Lupin, Teva and Zydus Cadila 17
Figure 7: Mean branded standard oral and parenteral drug value ($) and volume (SU) following generic entry between Q2 2006 and Q2 2008 in the UK 19
Figure 8: UK sales erosion of Propecia, Proscar, the total brand erosion and generic finasteride, Q2 2006-Q2 2008 20
Figure 9: Mean branded standard oral and parenteral drug value ($) and volume (SU) following generic entry between Q2 2006 and Q2 2008 in Germany 22
Figure 10: Sales erosion of Eloxatin versus generic oxaliplatin in Germany between Q2 2006 and Q2 2008 23
Figure 11: Incentives for generic prescribing in the French market 24
Figure 12: Mean branded standard oral and parenteral drug value ($) and volume (SU) following generic entry between Q2 2006 and Q2 2008 in France 25
Figure 13: Sales erosion of Norvasc/Amlor and Caduet versus generic competition in France, Q2 2007-Q2 2008 26
Figure 14: Barriers to generic erosion of brands in Spain and Italy 28
Figure 15: Mean branded standard oral and parenteral drug value ($) and volume (SU) following generic entry between Q2 2006 and Q2 2008 in Spain 29
Figure 16: Sales of Kytril in its oral and parenteral formulations versus generic competition in Spain, Q2 2006-Q2 2008 30
Figure 17: Mean branded standard oral and parenteral drug value ($) and volume (SU) following generic entry between Q2 2006 and Q2 2008 in Italy 31
Figure 18: Seasonal branded and generic sales erosion of cetirizine in Italy, Q2 2006-Q2 2008 32
Figure 19: Branded and generic sales erosion of and oxcarbazepine and zolpidem in Italy, Q2 2006-Q2 2008 34
Figure 20: Incentives for generic prescribing in the Japanese market 35
Figure 21: Mean branded standard oral and parenteral drug value ($) and volume (SU) following generic entry between Q2 2006 and Q2 2008 in Japan 36
Figure 22: Brand erosion (%) of cabergoline in Germany, Italy, UK and Japan, Q4 2006-Q2 2008 37
Figure 23: Mean generic price versus mean branded price of standard oral drugs, one quarter prior to generic entry in the seven major markets, Q2 2006-Q2 2008 44
Figure 24: Mean generic price versus mean branded price of standard parenteral drugs, one quarter prior to generic entry, Q2 2006-Q2 2008 46
Figure 25: Mean generic price versus mean branded price of oral and parenteral drugs in the US, one quarter prior to generic entry, Q2 2006-Q2 2008 47
Figure 26: Mean generic price versus mean branded price of oral and parenteral drugs in the UK, one quarter prior to generic entry, Q2 2006-Q2 2008 48
Figure 27: Mean generic price versus mean branded price of oral and parenteral drugs in Germany, one quarter prior to generic entry, Q2 2006-Q2 2008 49
Figure 28: Mean generic price versus mean branded price of oral and parenteral drugs in France, one quarter prior to generic entry, Q2 2006-Q2 2008 50
Figure 29: Mean generic price versus mean branded price of oral and parenteral drugs in Italy, one quarter prior to generic entry, Q2 2006-Q2 2008 52
Figure 30: Mean generic price versus mean branded price of oral and parenteral drugs in Spain, one quarter prior to generic entry, Q2 2006-Q2 2008 53
Figure 31: Generic price versus branded price of oral and parenteral drugs in Japan, one quarter prior to generic entry, Q2 2006-Q2 2008 54
Figure 32: Mean branded drug value ($) erosion following generic entry in the US, Q2 2006-Q2 2008 58
Figure 33: Branded drug value ($) erosion following generic entry in the UK, Q2 2006-Q2 2008 59
Figure 34: Sales of Coversyl and Coversyl Plus versus total generic perindopril sales in the UK, Q2 2006-Q2 2008 60
Figure 35: Branded drug value ($) erosion following generic entry in Germany, Q2 2006-Q2 2008 61
Figure 36: Branded drug value ($) erosion following generic entry in France, Q2 2006-Q2 2008 62
Figure 37: Branded drug value ($) erosion following generic entry in Italy, Q2 2006-Q2 2008 63
Figure 38: Branded drug value ($) erosion following generic entry in Spain, Q2 2006-Q2 2008 64
Figure 39: Branded drug value ($) erosion following generic entry in Japan, Q2 2006-Q2 2008 65
Figure 40: Mean branded erosion (%) of value ($) and volume (SU) according to ATC group following generic entry in the US between Q2 2006 and Q2 2008 68
Figure 41: Mean branded erosion (%) of value ($) and volume (SU) according to ATC group following generic entry in the UK between Q2 2006 and Q2 2008 70
Figure 42: Mean branded erosion (%) of value ($) and volume (SU) according to ATC group following generic entry in Germany between Q2 2006 and Q2 2008 71
Figure 43: Mean branded erosion (%) of value ($) and volume (SU) according to ATC group following generic entry in France between Q2 2006 and Q2 2008 73
Figure 44: Mean branded erosion (%) of value ($) and volume (SU) according to ATC group following generic entry in Italy between Q2 2006 and Q2 2008 75
Figure 45: Mean branded erosion (%) of value ($) and volume (SU) according to ATC group following generic entry in Spain between Q2 2006 and Q2 2008 77
Figure 46: Mean branded erosion (%) of value ($) and volume (SU) according to ATC group following generic entry in Japan between Q2 2006 and Q2 2008 78
Figure 47: Mean branded erosion (%) of value ($) and volume (SU) for reformulated drugs - Ambien, Mavik, Focalin and Coreg, Q2 2006-Q2 2008 82
Figure 48: Mean brand erosion of Novartis's Focalin (dexmethylphenidate) for its oral standard and oral extended formulations, Q2 2006-Q2 2008 84
Figure 49: Mean brand erosion of GlaxoSmithKline's Coreg (carvedilol) for its oral standard and oral extended formulations, Q2 2006-Q2 2008 86
Figure 50: Sales of Fosamax and Fosamax Plus D versus generic alendronic acid in the US market, Q2 2006-Q2 2008 89
Figure 51: Sales of Pravachol and Pravigard against generic competition in France, Q2 2006-Q2 2008 90
Figure 52: Drugs experiencing generic erosion between Q1 2006 and Q2 2007 93
Figure 53: Erosion curves for each drug experiencing generic entry 94
Figure 54: Mean erosion curve for drugs A, B, and C experiencing generic entry 94
Figure 55: Mean branded erosion of value ($) and volume (SU) for ATC group A (endocrine, metabolic and genetic disorders), Q2 2006-Q2 2008 95
Figure 56: Mean branded erosion of value ($) and volume (SU) for ATC group C (cardiovascular), Q2 2006-Q2 2008 96
Figure 57: Mean branded erosion of value ($) and volume (SU) for ATC group D (immunology and inflammation), Q2 2006-Q2 2008 97
Figure 58: Mean branded erosion of value ($) and volume (SU) for ATC group G (urology and gender-specific health), Q2 2006-Q2 2008 98
Figure 59: Mean branded erosion of value ($) and volume (SU) for ATC group J (infectious diseases), Q2 2006-Q2 2008 99
Figure 60: Mean branded erosion of value ($) and volume (SU) for ATC group L (oncology), Q2 2006-Q2 2008 100
Figure 61: Mean branded erosion of value ($) and volume (SU) for ATC group M (musculoskeletal), Q2 2006-Q2 2008 101
Figure 62: Mean branded erosion of value ($) and volume (SU) for ATC group N (central nervous system), Q2 2006-Q2 2008 102
Figure 63: Mean branded erosion of value ($) and volume (SU) for ATC group R (respiratory), Q2 2006-Q2 2008 103