Generic: Lidocaine patch 5%
The company: Endo Health Solutions/ EpiCept
Patent expiration date: Sept. 15, 2013
Estimated Global Sales 2012: $918 million
The scoop: Endo Health Solutions ($ENDP) faces a grim outlook next September when the company's biggest revenue driver, the pain-relieving patch Lidoderm, falls off patent. Lidoderm brought in $228 million, or 29% of Endo's total sales, in the second quarter. And Watson Pharmaceutical ($WPI) has its finger on the trigger with a lidocaine topical patch 5% it plans to launch when that patent expires In May, Endo settled a lawsuit with the company allowing it to launch a generic version of Lidoderm, and pay one-fourth of gross profits as royalties to Endo. That came at no small cost to Endo; the company endured an 83% drop in second-quarter profits related to patent litigation with Watson. Lidoderm earned $918 million in estimated sales this year; the company forecasts earnings below market expectations in 2013.