Patent Expirations and Market Impact
Empagliflozin (Jardiance)
Mechanism of Action: Sodium-glucose transporter 2 inhibitors Drug class: Small molecules Originator: Boehringer Ingelheim Developer: Boehringer Ingelheim; Eli Lilly and Company Indications: Cardiovascular disorders; Chronic heart failure; Renal failure; Type 2 diabetes mellitus Patent expiry: March 2025
Jardiance market revenue for ten years (2015-2024)
Jardiance (empagliflozin), an SGLT2 inhibitor, was approved in 2014 for treating type 2 diabetes, and its indications were later expanded to include heart failure and kidney disease. By 2023, the drug generated $8 billion in global sales. The typical list price for a 30-day supply of Jardiance tablets is approximately $600, though this can vary.
Jardiance has been a key revenue driver for Boehringer Ingelheim, playing a significant role in the growth of the company’s human pharmaceutical sales. It is often regarded as the primary factor behind the company’s sales growth, contributing to a substantial rise in overall revenue, especially in recent years due to the drug's strong market performance. Over the past decade, Jardiance has seen remarkable growth. However, in 2024, revenue declined, with a 2% decrease in global Jardiance revenue for Q3 2024, totaling $686.4 million compared to Q3 2023. U.S. revenue fell 19%, reaching $335.9 million, mainly due to lower prices, although this was partially offset by higher demand. On the other hand, international revenue grew by 23%, reaching $350.5 million, driven by increased volume. With the introduction of generic versions in India, it will be interesting to observe how this development impacts Jardiance's revenue in the coming years.
How will the patent expiry of Jardiance affect the market?
Jardiance has played a crucial role in Boehringer Ingelheim's revenue growth, contributing €7.4 billion in 2023 and driving a 10.3% increase in human pharmaceutical sales. In the first half of 2024, net sales grew by 7.4% to €12.9 billion, fueled by strong demand for Jardiance, OFEV®, and other key products. Meanwhile, Eli Lilly’s Q1 2024 revenue rose 26% to $8.77 billion, driven by sales of Mounjaro, Zepbound, Verzenio, and Jardiance.
Recently, Alkem and Glenmark launched generic versions of Jardiance under the brand names "Empanorm" and "Glempa." Additionally, Mankind Pharma, India’s fourth-largest pharmaceutical company by market share, introduced affordable generics under the brand names "Empaglyde," "Empagreat," and "Dynaduo." Glempa 10mg is priced at Rs 11 per tablet, with the 25mg strength at Rs 14. Alkem will offer its generic at prices around 80% lower than the original, while Mankind Pharma’s generic will be priced at Rs 5.49 per tablet for the 10mg version and Rs 9.9 for the 25mg version, representing a reduction of more than 90%. A fourth company, Alembic, received approval for its generic version of empagliflozin in 2020, but due to ongoing patent disputes, it is unlikely to be available until 2029. It will be interesting to see how the launch of these generics impacts Boehringer Ingelheim's and Eli Lilly's market revenue.