Nothing drives down a drug’s price like competition. According the U.S. Food and Drug Administration (FDA), a drug’s wholesale price drops by an average of 39% after just one generic competitor enters the market. With four generic competitors, prices tumble by 79%. These reductions translate into billions of dollars in savings for American consumers.
But before generics can hit the market, a drug’s patent must first expire. In the United States, drug patents last for 20 years from the date a patent application is filed, giving the pharmaceutical company that holds the patent the ability to set the drug’s price without competition during this time.
Here are some key drug patents expiring soon.
Patents for Merck’s (MRK) cancer drug Keytruda are set to expire in 2028, potentially resulting in more competition and lower prices. But in 2024, Keytruda was once again the best-selling drug in the world. Sales of the medication rose 18% to $29.5 billion last year.
The U.S. patent for Eli Lilly’s (LLY) pre-Ozempic GLP-1 drug Trulicity is set to expire in 2027. The drug was first approved by the FDA in 2014 and is used to help control blood sugar levels and help with heart health in people with type 2 diabetes. In 2024, Trulicity was one of the company’s best selling drugs, generating over $5 billion in revenue. Its current list price is $987 a month.
The patent for Pfizer’s (PFE) breast cancer drug Ibrance — first approved by the FDA in 2016 — expires in 2027. It was one of Pfizer’s best-performing drugs in 2024, generating $4.3 billion in sales. The cost for 21 capsules of Ibrance is over $15,000.
The blood thinner Eliquis was Bristol Myers Squibb’s (BMY) top revenue-generating medication last year. It brought in $9.6 billion in sales in 2024. Bristol Myers Squibb doesn’t expect to lose exclusive rights to the drug until 2026. However, it is also one of the 10 drugs that are subject to Medicare price negotiations. For Medicare beneficiaries, its list price went down 56% to $231, from a list price of $521
The blockbuster drug Farxiga was approved by the FDA in 2014 to treat type 2 diabetes and has since gained indications for heart failure and chronic kidney disease. AstraZeneca (AZN) reported $7.7 billion in sales for Farxiga in 2024. Its patents expire this year.
Bristol Myers Squibb and Ono Pharmaceutical’s Opdivo, a treatment for melanoma and other cancers, generated $9;3 billion in global sales. In 2024, the melanoma-fighting medication alone accounted for nearly 20% of the company’s $45 billion in annual revenue. Its patent expires in 2028.
Bayer (BAYRY) and Johnson & Johnson’s (JNJ) Xarelto is a blood thinner used to treat and prevent blood clots. The drug generated $2.3 billion in sales in 2024. The main Xarelto patent expired this February. The FDA approved the first generic version of the drug this month.
Sales of Novo Nordisk’s (NVO) diabetes medication Ozempic, known for its weight-loss side effects, grew 26% to $16.7 billion in 2024. The popular medication is among the drugs that will be subject to Medicare price negotiations this year. Its U.S. patent expires in 2032.
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