We all know that generic drugs are much cheaper than brand-name drugs. The reason is simple: generic drugs create competition in the market. Until there is generic competition, the brand-name drug manufacturer can charge whatever it wants, because it has a monopoly on the product — and in many cases on the whole drug category.

After competition is introduced, the free market sets the price, and prices come down — dramatically.

I know that you know this. But what I bet you didn’t know is that brand-name drug manufacturers are currently allowed by law to pay generic drugmakers to stay off the market — to not compete. That’s good for the drug companies — they all make money — but bad for consumers, because it means we still have to pay inflated, monopoly prices.

Fortunately, it looks like legislation is on the way to correct this glaringly anti-competitive practice, and in the process save American consumers billions of dollars.

A bill currently before Congress, the Preserve Access to Affordable Generic Drugs Act, would prohibit brand-name drug manufacturers from using pay-off agreements to keep cheaper generic equivalents off the market.

Earlier this week, FTC Chairman Jon Leibowitz said that putting an end to these pay-for-delay deals would save Americans $3.5 billion a year.

According to U.S. Senator Herb Kohl, who introduced the bill:

We cannot profess to care about the high cost of prescription drugs, while turning a blind eye to anti-competitive backroom deals between brand and generic drug companies that only serve the companies involved.

Please contact your Congressman and Senator to tell them you support the Preserve Access to Affordable Generic Drugs Act!

A blogger recently did a little investigating and discovered that generic Ritalin (methylphenidate) is available for $4 at Wal-Mart, as well as competitors Target and Kroger.

What’s interesting about this is that not one of the retailers includes the drug on its official list of $4 generic drugs. Here’s Wal-Mart’s list, for example. No trace of methylphenidate anywhere.

We can only assume the omission is intentional. Selling a highly addictive drug like methylphenidate for such a low price might raise eyebrows in some health and medical circles, so the retailers probably want to keep the promotion quiet.

Already, physicians are complaining loudly about supermarkets that are offering free antibiotics as a way to increase foot traffic — because overuse of antibiotics leads to antibiotic resistance and the decreasing effectiveness of these drugs. That would seem like a pretty minor concern compared to selling a Schedule II controlled substance like methylphenidate for $4. Drugs like cocaine, opium and morphine are in the same class. And we know what Tom Cruise thinks about Ritalin.

It’s a curious marketing strategy. If the purpose of the generic drug programs is to be a loss leader, drawing foot traffic to these stores in hopes shoppers will buy other items, doesn’t it defeat that purpose to keep generic Ritalin’s price a secret? Why offer it at the promotional price at all?

Whatever the backstory may be, it’s a secret no longer.

The most common cause of blindness in the elderly is age-related macular degeneration, or AMD. In cases of “wet AMD,” abnormal blood vessels grow behind the retina and leak blood and fluid, resulting in rapid sight loss.

Two drugs, Avastin and Lucentis, are used by doctors to treat wet AMD; both are injected into the eye in a series of treatments. The drugs are in the same class and are made by the same company.

So what’s the difference between the two?

Some doctors and researchers say the only difference is cost. And that difference is a big one.

Lucentis costs $2,000 per injection, while Avastin is about $50.

But only Lucentis has been approved by the FDA specifically for the treatment of AMD. Avastin is a cancer drug that has been prescribed off-label to treat AMD. To date, Avastin hasn’t been evaluated in randomized controlled trials — though many retina specialists swear by it.

So, should you wait for further trials before choosing Avastin over Lucentis? Perhaps — but you’ll be waiting a while. Genentech, the maker of both drugs, is in no hurry to get FDA approval for Avastin to treat wet AMD, because such approval would hurt, not help, its profits.

The earliest we can expect side-by-side results is a couple of years from now. Dr. Daniel F. Martin, chairman of the Cole Eye Institute at the Cleveland Clinic, is undertaking a study funded by the National Eye Institute that should provide comparative results by 2011, according to Consumer Reports.

In the meantime, do your research and talk with your doctor before making a decision.

Source

On Monday, the drug maker Cephalon announced that its best-selling drug, modafinil (branded as Provigil), is now available at pharmacies nationwide in a much-hyped longer-lasting formulation, branded as Nuvigil. Modafinil is prescribed to improve “wakefulness” for those who suffer obstructive sleep apnea, shift work sleep disorder (SWSD), and narcolepsy.

To encourage patients to transition from Provigil to the “new and improved” Nuvigil, Cephalon is offering a financial incentive in the form of help with prescription drug co-payments. To assist insured patients with co-pay costs, Cephalon is offering the Nuvigil Prescription Savings Program. Through this program, eligible patients will receive a co-pay savings at the pharmacy to reduce their out-of-pocket costs to fill the prescription. For many patients, with an average co-pay of about $40, this will lower monthly co-pays to $10.

But that’s not all. Even for those without prescription drug insurance, Nuvigil is now cheaper than Provigil. As the Wall Street Journal reports:

The company has set the stage for the switch campaign by raising prices for Provigil — to the dismay of some patients. The Wall Street Journal reported in November that Cephalon boosted the price sharply twice last year, and it was 74% more expensive than four years earlier. The drug now sells at an average price of $10.08 per pill.

To encourage people to switch to Nuvigil, Cephalon is selling it at an 11% discount to Provigil, or an average of $8.98 per pill, said Mike Derkacz, vice president of the central-nervous system therapeutic business at Cephalon.

So, with these financial incentives, is making the switch from Provigil to Nuvigil a good idea for you?

This is a decision that should be made by you and your doctor together. For some patients on modafinil, a longer-lasting version could make a big difference. For others, it won’t be very important.

But you should not make your decision based on the financial incentives alone, because they are short-term promotions. In 2012, when Provigil begins facing generic competition in the United States, it will become much cheaper than Nuvigil. Nuvigil won’t face generic competion until 2023, so you can expect its $8.98 per pill price to increase over time.