Drug Patent Expirations Boost Antidepressant Markets to $14 Billion by 2006, Says Frost & Sullivan
April 6, 2001 SAN JOSE, Calif.--(BW HealthWire)--April 5, 2001 via NewsEdge Corporation - A not-so-depressing situation is developing for users of antidepressant medications such as Prozac and Zoloft, however, the makers of these drugs might have a different view. The U.S. market will soon witness an introduction of generic equivalents to these products, providing the impetus for tremendous overall market growth and resulting in a range of low-cost prescription options for patients. Frost & Sullivan's (http://healthcare.frost.com) latest strategic health care analysis of the U.S. Antidepressant Medications Markets projects revenues to top $14 billion by 2006, which more than doubles the revenue estimates of 1999. Total revenues accounted for in Frost & Sullivan's research come from two segments: The markets for atypical antidepressants, and the markets for selective serotonin reuptake inhibitors (SSRI), respectively. "Any one of several trends may change the landscape of the U.S. antidepressant medications market," says Frost & Sullivan Pharmaceutical Industry Analyst Joe Warzecha. "The biggest trend, and the one everyone is talking about, is the encroaching generic-ization of the market." Several products will be facing generic competition for the first time as name-brand drugs lose their patent protection. This will result in increased competition for the companies that designed the original products, and will be a windfall for generic manufacturers and the 21 million Americans suffering from depression. "A generic drug is almost always sold at a lower price than branded products," says Warzecha. "Because there is a lower-priced option, customers and doctors may move towards using generics." Companies that designed the branded drugs, such as Prozac and Zoloft, may face more competition, but it does not necessarily mean they will lose market share. A strong brand goes a long way to preserving revenues and many doctors and patients have intense loyalty to products that have served them well in the past. "When a generic drug enters the market, companies with branded products may lower their prices in an attempt to keep costs competitive, but the prices of these drugs probably won't drop much," says Warzecha. "Since many of the products have such a strong brand image, customer may not believe that the generic is as effective as the branded product." Price has been a major concern for all drug manufacturers. Recent negative media attention has generated bad publicity for antidepressant medications. The lowering of prices may actually benefit companies because not only would it result in more units sold, but it should also draw positive media coverage. Frost & Sullivan presents the 2000 Marketing Engineering Awards to companies that have worked hard to make a positive contribution to the U.S. antidepressant medications industry. The Market Engineering Leadership Award for the total antidepressants medication market, goes to Eli Lilly. Forest Laboratories is given the Strategic Alliance Innovation Award. Glaxo Wellcome receives the Market Engineering Leadership Award for the atypical antidepressant market. Frost & Sullivan, which is headquartered in San Jose, Calif., is a global leader in international strategic market consulting and training. Frost & Sullivan's industry experts monitor the pharmaceutical industry for market trends, market measurements and strategies. This ongoing analysis is included in the frost.com Pharmaceuticals Monitor Service, which includes research on the European Markets for Psychotropic Drugs and the US Alzheimer's Disease Medications Markets. Executive summaries and interviews are available to the press. Along with publishing in-depth strategic market consulting research, Frost & Sullivan also provides custom consulting services to a variety of national and international companies. U.S. Antidepressant Medications Market Research: No. 7458-52 Date: March 2001 CONTACT: Frost & Sullivan | Nick Mariottini, Phone/Fax: 530/894-2136 | nmariottini@frost.com | http://www.frost.com Would you like to email or fax this story to a friend?
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