Lifting Depression at a Lower Price: Prozac Goes Generic

Since its launch in 1987, the antidepressant Prozac has become one of the biggest-selling drugs in history, transforming lives like that of Belinda Brown, who was on a downward spiral until she began taking the green-and-white pills.

"I feel like I was being a productive person," she says. "I could finally get a job. I was actually an upstanding citizen again."

Belinda has plenty of company. Last year, US sales of Prozac hit $2.7 billion. The drug has been a cash cow for pharmaceutical giant Eli Lilly, accounting for one-quarter of its revenue.

But now that Lilly's patent has expired, paving the way for generic Prozac, pharmaceutical analyst Elliot Wilbur at CIBC World Markets Corporation says the company's bottom line will be hit hard.

"The most likely scenario is that within the first 12 months, they will probably lose in excess of 50%," he says.

Beginning as early as this weekend, the generic version of Prozac, fluoxetine, will be available in pharmacies. Barr Laboratories of Orange County, New York, has won the exclusive right to manufacture the most popular 20-milligram capsules for a period of 6 months, which will have an immediate effect on price.

Right now, the retail cost of Prozac is about $2.50 per 20-milligram pill. The generic variety is expected to sell at a 25 to 40% discount, dropping the generic cost to an average of $1.75. Early next year, other companies will be allowed to sell generic Prozac. Some analysts believe the per-pill price could drop to as low as 25 cents.

At those kinds of savings, some psychiatrists, including Mt. Sinai's Dr. Eric Hollander, worry that insurance companies will try to push the generics on patients taking not only Prozac but also antidepressants like Zoloft and Paxil, which are all in the same class of drugs known as selective serotonin uptake inhibitors, or SSRIs.

"I think that this can cause direct harm to patients because these medications are not the exact equivalent and the side effects and benefits actually may differ from medicine to medicine," he says. "So that can be a significant issue for the patient and the consumer."

CBS 2 contacted the American Association of Health Plans, which represents 150 million people. A spokesperson insisted patients will still be able to get whichever antidepressant their doctors originally prescribed.

"I think what will happen is the generic drugs will be offered at a lower copayment, the brand name will be offered at a higher copayment, and the other SSRIs will still be available," says Dr. Charles Cutler.

Health insurance representatives say those concerns are overblown. They insist Prozac and other brand-name antidepressants will still be available, but you'll have to pay a higher copay compared with the generics.

You can also expect more generics down the pike. Blockbuster drugs such as Prilosec and Claritin will likely lose their patents in the cming year, as well.
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