drug coming off patent

Hi there,

It depends on the case prompt + objective here. Can you provide more detail?

In essence however, when a drug comes off a patent, that means it no longer has monopoly power. Generics can come in and sell for a far lower price.

There is a huge impact here in terms of both volumes and price.

One way we can compete is by leveraging brand awareness (like Aspirin and Claritin did).

Drug comes-off the patent → other companies make generics and sell it at cheap price since they don't have any R&D cost to amortise → original company can't sell at the same monopolistic price any more → plus the market becomes fragmented because the suppliers become many

It impacts mainly post-expiry revenue. Plus you need to factor-in the fact that post-expiry lowered revenues may not be enough to pay-off the amortised R&D cost so you might have to amortise it while the patent is in effect. Companies can try to get extensions, file other patents for other medicines, etc. etc.