IMPACT OF LIPITOR PATENT EXPIRY ON PFIZER.
TABLE OF CONTENTS
CHAPTER 1: INTRODUCTION
1.2 What is Lipitor
1.3Expiry of Lipitor patent
CHAPTER 2: CHALLENGERS
2.2 Pfizer’s strategies
CHAPTER 3:FINANCIAL IMPACT ON PFIZER
AS LIPITOR GOES GENERIC
This report is about the impact of patent termination of Lipitor on Pfizer pharmaceutical company. Lipitor has been in the market since 1997 and is the mother of all drugs. (wsj_live, 2011) As of November 30th 2011 Pfizer lost the patent of Lipitor opening path to generic competitors for America’s most popular medication and now all generic producing companies will be able get hold of the patent and produce their own stock legally. Pfizer was the first to earn 11$ billion in a year selling Lipitor and 130 $ billion over the patent’s life Lipitor is responsible for the one sixth sales of Pfizer. Due to the patent expiration of the drug Lipitor now other generic producing companies will be able to produce the drug and sell it at much lower rate than Lipitor which is a branded drug. Lipitor is a blockbuster drug of Pfizer which is responsible for making a huge profit and has kept the company at the no1 position. Until now Pfizer was the sole producer and enjoyed the monopoly of the drug. As Lipitor goes generic the rates of the drug are falling down massively so as to keep the current users of the drug to continue it. Pfizer is putting up a fight with all generic producing companies and as it is the best marketing pharmaceutical company in the world it is using strategies to keep the sales up and to make the consumers keep using Lipitor even after the expiration. It is good news for the consumers but not so much for the pharmaceutical industry. Lipitor is a blockbuster drug which going generic is a very big deal in the world of pharmaceuticals; it has been responsible for making a 27% of total sales revenue for all biopharmaceuticals. Pfizer is the best marketing pharmaceutical company in the world which is why it will squeeze out all of the value of the brand by using all strategies which are applicable in this case. It has a lot of challengers who have been waiting to get an opportunity to start producing the generic version of Lipitor like Ranbaxy and Watson pharmaceutical who have the approval to produce the generic Lipitor for 180 days after the patent expiry. While Pfizer thanking on the fact that the price difference between the branded and generic will not be much for the first six months. (sanburn, 2011) Pfizer is hoping for all the current users of Lipitor to remain loyal to the brand and at the same time is negotiating and made deals with sellers to have them sell Lipitor in the market at the generic prices. (wsj_live, 2011) The impact on Pfizer financially is at large in the start but due to its solid financial risk and excellent business risk profile it will be able to withstand the loss in the coming time. The investors are warned at expecting lower numbers and with plans to stabilize them in a short period of time. It is a very complex situation but due to Pfizer’s creative process to deal with the situation it will help to bring the numbers up. With the patent expiry of Lipitor it is challenging to present the investors with the numbers Pfizer has hit before but it’s not impossible. (philippidis, 2011)
PFIZER is the world’s largest pharmaceutical company. It was created in the year 1849 by Charles Pfizer and company, a chemical business; over the last century it has associated itself with developing trends to become a research-based pharmaceutical company. The penicillin used during the World War 2 was produced was Pfizer. The company is situated in New York with its research department in Groton,...
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