Impact of Lipitor Patent Expiry on Pfizer.
IMPACT OF LIPITOR PATENT EXPIRY ON PFIZER.
TABLE OF CONTENTS PAGE NO
Executive Summary 3
CHAPTER 1: INTRODUCTION
1.1 Introduction 4
1.2 What is Lipitor 5
1.3Expiry of Lipitor patent 5-6
CHAPTER 2: CHALLENGERS
2.1 Challengers 6
2.2 Pfizer’s strategies 7
CHAPTER 3:FINANCIAL IMPACT ON PFIZER
AS LIPITOR GOES GENERIC 8-9
Recommendations 10
Conclusion 11
Executive summary:
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
TABLE OF CONTENTS PAGE NO
Executive Summary 3
CHAPTER 1: INTRODUCTION
1.1 Introduction 4
1.2 What is Lipitor 5
1.3Expiry of Lipitor patent 5-6
CHAPTER 2: CHALLENGERS
2.1 Challengers 6
2.2 Pfizer’s strategies 7
CHAPTER 3:FINANCIAL IMPACT ON PFIZER
AS LIPITOR GOES GENERIC 8-9
Recommendations 10
Conclusion 11
Executive summary:
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
References: cbs news. (2011, march 10th). pfizer faces loses as lipitor patent set to expire. Retrieved december 9th, 2011, from cbsnews.com: http://www.cbsnews.com/stories/2011/03/10/business/main20041502.shtml cnbc news control, m. (2011, november 22nd). Pfizer apos;s Lipitor to go off-patent: Will Ranbaxy cash-in? Retrieved december 11th, 2011, from youtube.com: http://www.youtube.com/watch?v=uZnGUbZlRvk dastidar, s dupont, v. (2011, december 1). pfizers blockbuster drug goes generic. Retrieved december 11, 2011, from yahoo.com: http://news.yahoo.com/pfizers-blockbuster-drug-lipitor-goes-generic-162853820.html herper, m Lichtenberg, F. L., & Duflos, G. (2009). Time Release: The Effect of Patent Expiration on U.S. Drug Prices, Marketing, and Utilization by the Public. united states: Manhattan Institute for Policy Research. Center for Civic Innovation. narayan, a. e. (2011, december 01). ranbaxy lipitor copy in us stores threatens pfizer sales. Retrieved december 10, 2011, from businessweek.com: busineesweek.com/news/2011-12-01/ranbaxy-s-lipitor-copy-in-u-s-stores-threatens-pfizer-sales.html newshour, p remyblaire, t. (2011, december 2nd). lipitor turns generic. Retrieved december 11th, 2011, from youtube.com: http://www.youtube.com/watch?v=jnsF2NLT_vA sanburn, j wsj_live. (2011, november 2nd). after patent expires pfizer staying with lipitor. Retrieved december 9th, 2011, from dailymotion.com: http://www.dailymotion.com/video/xm3k9a_after-patent-expires-pfizer-staying-with-lipitor_news wsj_live