Alzheimer’s is the most common form of dementia in older people, affects an estimated 5.1 million Americans as per the data from U.S. National Institutes of Health. A recent report from Alzheimer’s Disease International revealed that global cost of dementia is more than $600 billion. Aricept, one of the popular drugs for Alzheimer’s made by Japanese company Eisai, can ease the symptoms of Alzheimer’s. Ranbaxy Laboratories, one of the biggest pharmaceutical companies in India has received exclusive rights to sell generic version of Aricept in the US.
Aricept’s patent on the drug will expire on 25 Nov of this year. Food and Drug Administration (FDA) stated in a letter that Ranbaxy can start selling the drug right after expiration of the patent. The news is a positive news for Ranbaxy as US is a big market for this durg. Eisai’s last year sales from Aricept included 60% revenue from the US. Analyst estimated that Ranbaxy can add as...
much as $300 million in pretax profit over six months by sale of the Alzheimer’s drug.
Another positive part of the FDA approval is that Ranbaxy has been given the sole license to sell the drug. An application by Teva, an Israeli company, was changed from “approved” to “tentatively approved” effective immediately, precluding the Israeli company from competing with Ranbaxy in the six-month period, the FDA said.