[DarkStar851]

Yes, the old drug patent will expire, and when this happens the company typically pulls an "oh our old version is now magically unsafe!" to wrestle away competition.

Plus developing a product from the old patent still requires extensive FDA approval. Very expensive stuff.

[hjk05]

Do you have references for that claim? If a company goes out with a claim their old product is unsafe it’s not like it’s rocket science to test the claim. And if their lying and you could literally corner a billion dollar industry by testing the claim I’d expect every producer of generics to do so. On the other hand if the product is actually unsafe that opens up liability claims from costumers.

[Scoundreller]

I've seen companies create "extended release" formulations of their old formulation 1 year before the patent expires to get everyone to switch over to the patented version before the generic comes out.

I've even seen it done when the previous version and the new version were still both once daily (tamsulosin, I'm looking at you!)

Yes, some insurers will hesitate to cover the new formulation when it comes out, but not all.

Sometimes the insurer will make a deal with the manufacturer so that the manufacturer is only getting paid the generic-equivalent price. But who knows what happens behind closed doors.