The world’s largest drug manufacturer Pfizer is fighting back aggressively to protect its turf and to hang on to blockbuster Lipitor revenues as long as possible.
Pfizer has devised an aggressive strategy to make up for the loss in sales with the top-selling drug Lipitor losing patent protection on November 30. The company has said that it will offer Lipitor at or even below the cost of a generic. Lipitor sales in the US are nearly $8 billion, and around one-sixth of the company’s revenue comes from the world’s top selling drug.
“Our strategy during the 180-day period is to help patients who want to stay on Lipitor have access to the brand after loss of exclusivity on November 30. Our programs, which are designed to offer Lipitor at or below generic cost during the 180-day period, will not increase costs for the significant number of payers participating in our programs,” a Pfizer executive said. Normally once the patent on a drug expires, generic competition grabs nearly all the market share within a year, while the innovator who owned the brand, shifts its focus to newer medicines. Now with very few blockbuster drugs expected in the market and a dry-up in the pipeline, Big Pharma is fighting hard to preserve whatever market share it can from its brand, even after the patent expires.
Earlier Pfizer not only cut a deal with Watson Pharmaceuticals to launch an `authorised generic’, it has in an unprecedented move, tied up with pharmacies and health insurers to provide the drug under a heavily rebated price. Analysts say that the company may be able to retain around 30% of the market during the first six months, even after losing exclusive rights over the drug. The only other rival in the market will be Ranbaxy.
Pfizer has struck deals with Diplomat Speciality Pharmacy, and prescription benefit managers to supply Lipitor at $4 per month, and also the drug will be mailed to the patient’s doorstep. Experts say Pfizer is trying to block generic competition through certain deals.
Once the market exclusivity period of 180-days ends and generic copies flood the market, the price of the drug erodes by 90%. At least five to six manufacturers including Mylan, Teva and Dr Reddy’s Laboratories are expected to enter the market with Lipitor copies after Ranbaxy’s exclusivity expires.
Pfizer has devised an aggressive strategy to make up for the loss in sales with the top-selling drug Lipitor losing patent protection on November 30. The company has said that it will offer Lipitor at or even below the cost of a generic. Lipitor sales in the US are nearly $8 billion, and around one-sixth of the company’s revenue comes from the world’s top selling drug.
“Our strategy during the 180-day period is to help patients who want to stay on Lipitor have access to the brand after loss of exclusivity on November 30. Our programs, which are designed to offer Lipitor at or below generic cost during the 180-day period, will not increase costs for the significant number of payers participating in our programs,” a Pfizer executive said. Normally once the patent on a drug expires, generic competition grabs nearly all the market share within a year, while the innovator who owned the brand, shifts its focus to newer medicines. Now with very few blockbuster drugs expected in the market and a dry-up in the pipeline, Big Pharma is fighting hard to preserve whatever market share it can from its brand, even after the patent expires.
Earlier Pfizer not only cut a deal with Watson Pharmaceuticals to launch an `authorised generic’, it has in an unprecedented move, tied up with pharmacies and health insurers to provide the drug under a heavily rebated price. Analysts say that the company may be able to retain around 30% of the market during the first six months, even after losing exclusive rights over the drug. The only other rival in the market will be Ranbaxy.
Pfizer has struck deals with Diplomat Speciality Pharmacy, and prescription benefit managers to supply Lipitor at $4 per month, and also the drug will be mailed to the patient’s doorstep. Experts say Pfizer is trying to block generic competition through certain deals.
Once the market exclusivity period of 180-days ends and generic copies flood the market, the price of the drug erodes by 90%. At least five to six manufacturers including Mylan, Teva and Dr Reddy’s Laboratories are expected to enter the market with Lipitor copies after Ranbaxy’s exclusivity expires.
No comments:
Post a Comment