Blockbuster Drug

Definition

A pharmaceutical product that generates annual revenue exceeding $1 billion, representing a transformational commercial success for its manufacturer. Blockbuster drugs — such as statins, biologics for autoimmune diseases, and oncology treatments — drive the majority of pharmaceutical industry profits and are among the most valuable intangible assets in existence. The blockbuster model depends on patent exclusivity periods, after which generic competition typically erodes revenue by 80-90% within two years of patent expiry.