Pharmaceutical firms to make generic Prilosec

NEW YORK -- Three generic drug companies have joined forces to launch a generic version of the blockbuster ulcer medication Prilosec by the end of the year. The new version eventually could save consumers and businesses billions of dollars.

Andrx Corp. and GenPharm Inc. will relinquish their six-month, co-marketing exclusivity for a generic form of Prilosec to Kremers Urban Development Co., known as KUDCo, for a share of the profits. On Friday, the U.S. Food and Drug Administration gave final approval to KUDCo's version of Prilosec, which goes by the generic name omeprazole.

UBS Warburg analyst Steve Valiquette said KUDCo will likely price the drug 25 percent below Prilosec's $3.69 wholesale per-pill price.