Lilly gets rivals after patent expires

INDIANAPOLIS (AP) - Two drugmakers have announced the launch of generic versions of Eli Lilly and Co.'s top seller Zyprexa two days after the U.S. patent protecting the antipsychotic expired.

Teva Pharmaceutical Industries Ltd., based in Israel, said Tuesday it will sell five different doses of olanzapine tablets, while India-based Dr. Reddy's Laboratories will offer a 20-milligram version. The companies have six months of marketing exclusivity. They said Zyprexa had about $3.2 billion in U.S. sales as of September.

Zyprexa generated more than $5 billion in worldwide sales last year for Lilly, and the company has said it expects "rapid and severe erosion" of sales once cheaper generic competition enters the market. The drug is used to treat schizophrenia and bipolar disorder.

Lilly has been preparing for this loss for several years. It plans to counter the Zyprexa revenue loss and other patent expirations by relying on its pipeline of drugs under development, its animal health business, emerging markets like China, and sales growth in Japan. But some analysts question whether Lilly can make up for the lost sales and maintain its dividend, which currently stands at a quarterly rate of 49 cents per share.

Lilly shares fell 49 cents, or more than 1 percent, to $37.72 in late morning trading, a slightly deeper drop than the Dow Jones industrial average.