Why Does Zyprexa Cost so Much?

Zyprexa is the brand name for olanzapine. It's made by Eli Lilly for treating biploar disorder (manic depression) and schizophrenia. It is Eli Lilly's best selling drug, generating sales of nearly $3 billion (US) per year, which is $8000 per minute. One of the reasons it's made so much money is because it is incredibly expensive. One month's supply costs hundreds of dollars. There is no legal generic version available.

History

• Drug companies come up with the cost of their medicines by adding up all of the money they spent for research, development, packaging, distribution and advertising. They then add a little extra to make a profit. Traditionally, this addition has been left in the hands of the company to determine. However, when a new drug comes out, there is no competition. The original maker holds the patent and the complete monopoly on the drug for a number of years determined by the FDA (Federal Drug Administration). Having the monopoly is thought to be compensation for the company creating the drug.

Types

• Over the years, drug companies have discovered two ways to keep a monopoly on a drug. The first is by vastly increasing their advertising expenses. For instance, drug companies used to never make television commercials for prescription drugs. It was too expensive. Since the 1990's, it is commonplace, because the more you spend on advertising, the more you can charge a customer, claiming that you need to make up all of your costs.

  The second way is by challenging the patent. If your drug is patented for one or two disorders, then you can reapply for another patent extension if you can prove that your drug is also good for yet another illness or disorder. This is currently happening to Zyprexa. Zyprexa's patent will not expire until 2011, unless they get yet another patent extension.

Misconceptions

• It is a misconception that a drug company does not get any money from the generic versions of their products. They often make the generics themselves.
  Also, many health insurance companies will not cover Zyprexa because mental illness is not considered life-threatening enough of a condition to cover.

Theories/Speculation

• Eli Lilly is also the same company that made Prozac (fluoxetine), the most prescribed medicine in the world. Their patent expired in 2001 after loosing a court battle to extend the patent. This may be why Eli Lilly keeps trying to keep a hold of the patent for Zyprexa as long as they can.

Prevention/Solution

• Ask your doctor or therapist to see if they have any samples of Zyprexa for you. Ask your doctor and your political representative's office to see if there are any local programs to help with financial assistance for Zyprexa.

Warning

• Do not buy any Zyprexa on the street, as you cannot be sure of what you are getting. Any generic Zyprexa offered on the Internet usually turns out to either be a scam or a far inferior drug. The earliest generic Zyprexa will be available is 2011.