The approval of Impax Laboratories Inc (NASDAQ:IPXL) generic version of Vytorin by the U.S. Food and Drug Administration is somewhat a threat to the Merck & Co., Inc. (NYSE:MRK) cholesterol-reducing drug Vytorin. Given that it will be the first time the drug maker will be facing competition, it will have to up its game. It will be competing against a drug, said to have generated more than $1 billion in sales in 2016.

But the competition is not just Vytorin

The generic competition is not only to Merck’s Vytorin but also to its Zeita, antibiotic Cubicin as well as its Nasonex nasal spray. With the presence of Teva’s generic version of the drugs in the United States, the three will have to prove their viability in the market and this will not be a walk in the park. Its arthritis drug Remicade will also have to showcase its worth in European markets.

Generally, there is the tenancy of branded products declining in their revenue the moment multiple generics hit the market. More often than not, the decline is usually by 90%. Vytorin, which previously sold under the brand names Zocor and Zetia before they lost patent protection currently, costs about $300 for a supply of 30 tablets.

Zetia is said to have generated $2.6 billion of 2016 sales before the loss of its patent a few days ago.

Merck’s optimism of offsetting the losses incurred

The loss of two patents was obviously a blow to Merck. However, the company says it is gearing towards making up the losses and its first consideration is an inclusion of its cancer drug Keytruda. The drug has the approval to treat non-small cell lung cancer and melanoma. However, it is also being experimented with other types of cancers.

Merck is also optimistic about sustaining its 2017 profit forecast. In the meantime, Merck’s stock closed at $62.70 witnessing a increase of $0.40 or $0.64%.