GERMAN PATENTS EXPIRY POSES CHALLENGE FOR DRUGMAKERS IN 2005

For research-based drugmakers on the German market, 2005 could prove a major challenge, as local patents on several key active ingredients are due to expire this year. A total of some 18 active principals are scheduled to come off patent in 2005, implying potential losses of some EUR817mn (US$1.07bn), compared to estimated lost earnings of EUR720mn (some US$942.84mn) last year. The reports suggest that UK-based drug major GlaxoSmithKline is likely to lose three drug patents worth some EUR417mn (US$546.01mn) in 2005, while Janssen-Cilag and Sanofi-Aventis are respectively due to lose one and four leading products.

Another potential headache is the growing threat from generics producers. While the government is eager to contain its drug bill, generics makers are reportedly lobbying for a greater share of the drugs reimbursed by the country's health funds. Local associations claim that authorities have so far failed to exploit further potential savings of some EUR1.4bn (US$1.83bn) from increased generics provision, in addition to approved products' currently implied savings of some EUR3.4bn (US$4.45bn) per year.