Depressing News for Drugmakers

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In a crowded market like the one that antidepressant drugmakers are in, a journal article that analyzed more than 200 clinical trials and concluded that no antidepressant is better than any other wasn't exactly what the companies were hoping for.

Drugmakers rightly try to differentiate their products, but a just-published article in the Annals of Internal Medicine concludes that there's no reason to choose one second-generation antidepressant over another on the basis of differences in effectiveness.

Not what the doctor ordered. But it's a big deal, because there's a lot of money in this sector.

Drug

Manufacturer

YTD Sales (in Millions)

Zoloft

Pfizer (NYSE: PFE)

$408

Cymbalta

Eli Lilly (NYSE: LLY)

$1,976

Paxil

GlaxoSmithKline (NYSE: GSK)

$702

Wellbutrin

GlaxoSmithKline and Biovail (NYSE: BVF)

$538

Lexapro

Forest Labs (NYSE: FRX)

$1,744

Unfortunately for these branded drugs, the study also included antidepressants available as generics, such as Eli Lilly's Prozac, Wyeth's (NYSE: WYE) Effexor, and Bristol-Myers Squibb's (NYSE: BMY) Serzone. Since they're usually available more cheaply, doctors may continue to gravitate toward prescribing generics.

Of course, effectiveness of the drugs is just one component to choosing a drug -- side effects and, to a lesser extent, ease of use also come into play. The article concluded that the side-effect profiles were relatively similar, but the drugs do have different dosing regimens -- some are available in extended-release formulas -- which could be a selling point to patients.

And it should be noted that some antidepressants are used to treat other diseases. Cymbalta, for instance, is also prescribed for diabetic nerve pain and fibromyalgia. This study did not address that issue, so sales for those reasons should be unaffected.

When a product is clearly different or better than its competitors, a company doesn't have to do as much to sell it. But when it's just the same? Hello, advertising (and the related expenses).

Overall, though, this article has to be a major downer for drugmakers and investors. At least they won't have to waste too much time figuring out which antidepressant to take.

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Fool contributor Brian Orelli, Ph.D., doesn't own shares of any company mentioned in this article. Pfizer is also an Inside Value recommendation, and the Fool owns shares, too. The Motley Fool has a disclosure policy.

Comments from our Foolish Readers

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  • Report this Comment On November 21, 2008, at 6:40 AM, 4mythreegirls wrote:

    This is flawed study that has limitations. It is another jab at trying to get physicians to utilize more generics. If you look at anti-depressant studies they "work" approximately 48% of the time which means there is plenty of switching and room for all the antidepressants. In addition, they only looked at Response which by definition is a 50% improvement in symptoms - physicians all ready know that all the antidepressants work. The more stringent criteria is Remission (or fully well over a long period of time) and the currently available branded SRI - SNRI have proven over time to achieve remission. Lastly, managed care coverage plays a huge roll in how often these medicines get prescribed. Recently, branded medicines have been put back on formularies that previously removed them. This is because the medical community knows and understands the differences and demanded that the branded medicines become available at a lower co-pay.

  • Report this Comment On January 20, 2009, at 8:42 PM, GoNuke wrote:

    This kind of study is tragic. Most people familiar with antidepressants: doctors who prescribe and patients who consume, know that most antidepressants don't work very well for most people. The good news is that there is usually at least one antidepressant that will work well for each individual. It is pretty normal for a depressed patient to try a number of competing antidepressants before finding the one that works for them. Given how long it takes to reach a therapeutic dosage and the 6 weeks you need to spend at a certain dosage before concluding that it does or doesn't work, finding the right med is time consuming.

    The findings of this study suggest that the research team doesn't understand what they were studying.

    Note to investors: ignore these results. They are meaningless.

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