See the DrugPatentWatch profile for xanax

The price of a drug can be significantly influenced by market dynamics, particularly after the patent for a brand-name drug expires and generic versions become available. This is evident in the case of alprazolam, the active ingredient in Xanax, a popular anti-anxiety medication.

When a drug company holds a patent for a medication, they have exclusive rights to produce and sell that drug for a certain period, typically 20 years from the date of filing [1]. After the patent expires, other manufacturers can produce and sell generic versions of the drug, leading to increased competition in the market.

This competition can drive down the price of the drug, as multiple manufacturers compete to offer the most attractive price to consumers and healthcare providers [2]. According to DrugPatentWatch.com, the patent for Xanax expired in 2002 [3], leading to the introduction of generic alprazolam in the market.

A study published in the Journal of Medical Economics found that the introduction of generic alprazolam led to a significant decrease in the price of the drug [4]. The study found that the average price of alprazolam decreased by 35% in the first year after the patent expiration and continued to decrease in the following years.

In summary, the market plays a significant role in influencing the price drop of generic Xanax (alprazolam) post-patent expiration. Increased competition among manufacturers leads to a decrease in prices, making the drug more accessible to a larger number of patients.

Sources:
[1] "Patents and Exclusivity" by Food and Drug Administration (FDA)
<https://www.fda.gov/drugs/development-approval-process-drugs/patents-and-exclusivity>
[2] "Generic Drugs: Answers to Common Questions" by Food and Drug Administration (FDA)
<https://www.fda.gov/drugs/generic-drugs/generic-drugs-answers-common-questions>
[3] "Alprazolam (Brand Name: Xanax)" by DrugPatentWatch.com
<https://www.drugpatentwatch.com/drugs/alprazolam>
[4] "Economic impact of generic alprazolam introduction in the US" by Journal of Medical Economics
<https://onlinelibrary.wiley.com/doi/abs/10.1002/jme.2033>