Amgen, Inc. (NASDAQ:AMGN), Novartis AG (ADR) (NYSE:NVS), Merck & Co., Inc. (NYSE:MRK) And More Under Pressure As Generics Arrive For Biotech Drugs And Therapy
Dallas, Texas, 09/22/2014 (ustrademedia) – Amgen, Inc.(NASDAQ:AMGN) is but one of the few targeted by companies such as Novartis to imitate and sell, cheaper versions of block buster biotechnology drugs such as Amgen’s cancer drug Neupogen, which cost the company $1.4 billion.
At stake in the emerging generic market production is $250 Billion, as low-cost imitation drugs enter the market. While thus far, drugs such as Lipitor were easily accessible through generic drugs, it did not hold water for the biotechnology products.
For biotech products belong to a different genre, and are typically made from living cells and are difficult to copy exactly. Further complications shall arise as the industry now prepares to create a range of ‘biosimilar’ products in the US, in the near future, if FDA latest developments are implemented.
As reported by Michael Kleinrock, who is the director of research development, IMS Institute for Healthcare Informatics, “There are a number of uncertainties surrounding these applications.” The expert also added that there is no clarity on the “attitudes of doctors, insurers and patients” and for acceptance of such generics it may take “several years to see how this evolves.”
AMGN will be one of the first to feel the implications of developing biosimilars as the likes of Novartis AG (ADR) (NYSE:NVS), now have the approval(in March) to produce AMGNs Neupogen.
But the complex structure of biodrugs does have its limitations and challenges. Additionally the new 2012 US congress law which allow for biosimilar production comes after the Euro approval for production of Amgen’s Neupogen in 2008.
Keytruda, which is melanoma drug developed by Merck & Co. (NYSE:MRK), which was approved on September 4, is expected to cost patients an average of $150, 000 per year, if it is ministered every three weeks. And it is these type of products which companies wish to target in the category of ‘biosimilars’ as it will drive the costs of treatment and bring greater number of consumers.