Monday, January 6, 2014

Biosimilars Pose A Mild Threat Compared With Generic Small Molecule Drugs

The first rule of investing in pharmaceuticals is that when a drug loses patent protection, the drug maker loses sales. Remsima, a biosimilar version of Remicade, has been on sale in Korea since September 2012. Why haven't Remicade sales there fallen off a cliff?

Small molecule drugs get immediately hammered by generic competition, losing as much as 90% of sales within a year of losing patent protection. Here's why the makers of some of the world's best selling biologics aren't sweating the competition.