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“The generics are coming! The generics are coming!”
I have visions of people running up and down the halls at Pfizer headquarters, the makers of Lipitor, sounding the alarm like Paul Revere. They have cause for alarm. Lipitor, their golden child, is all grown up and about to leave the house. The patent on Lipitor ran out last week, opening the door for generic manufacturers to enter the market. Not just a footnote, this is big news for the millions who take Lipitor and for Pfizer’s stockholders.
Lipitor, what do you know, T or F?
1. Lipitor is the best-selling legal drug in history.
2. Pfizer sued to extend its patent and won.
3. Lipitor lowers blood pressure.
Lipitor (atorvastatin) is in the class of medicines called statins, which decrease cholesterol levels. Its competitors include Zocor, Zetia and Crestor.
Lipitor was introduced in 1996 with a small market share and a 15-year patent. Within six years of its launch, it became the best-selling legal drug in history and the first to top the $10 billion mark for annual sales. Since then, it has grossed more than $100 billion in sales worldwide. Forty-four million people around the world take Lipitor. For Pfizer, it has been a cash cow.
In the U.S. there are over 50,000 prescriptions written for Lipitor annually. In 2010 annual gross sales topped $13 billion, over $7 billion from the U.S. market alone. The average wholesale price of Lipitor is $147 for a one-month supply. The actual cost to patients depends on insurance status and co-pay.
Pharmaceutical manufacturers have been lining up to produce atorvastatin in anticipation of the expiration of Pfizer’s patent. Most patients needing statins take them for life. With established patients already using atorvastatin and newly diagnosed patients entering the market, pharmaceutical manufacturers are salivating at the prospect of having access to this drug. Merck, for example, has plans to combine atorvastatin with other cardiovascular medications.
Do not expect Pfizer to go quietly into that good night. They are negotiating with insurance companies and pharmacy benefit managers (middle men) to preserve their market share. In a direct appeal to patients, Pfizer now offers coupons to encourage current patients to stay with Lipitor, though Medicare and Medicaid recipients are not eligible.
When drugs are about to go off patent, the parent company generally sues a generic manufacturer crying (I’m paraphrasing), “You can’t make our drug, you wretched scoundrels.” Of course, they can. Of course, the parent company loses (as Pfizer did). But, by tying it up in the courts, Pfizer bought precious time, essentially extending their patent. For Pfizer, this delay tactic allowed them to rake in about $7 billion in sales.
For patients already taking Lipitor, switching to generic atorvastatin could eventually mean hundreds of dollars in savings annually, but not anytime soon. To date, there are only two companies approved to manufacture atorvastatin. In time, as more companies manufacture it, the price should noticeably decline.
Pfizer’s nightmare is a dream for the millions who take Lipitor.
Answers: 1. T 2. F 3. F
“The generics are coming! The generics are coming!”
I have visions of people running up and down the halls at Pfizer headquarters, the makers of Lipitor, sounding the alarm like Paul Revere. They have cause for alarm. Lipitor, their golden child, is all grown up and about to leave the house. The patent on Lipitor ran out last week, opening the door for generic manufacturers to enter the market. Not just a footnote, this is big news for the millions who take Lipitor and for Pfizer’s stockholders.
Lipitor, what do you know, T or F?
1. Lipitor is the best-selling legal drug in history.
2. Pfizer sued to extend its patent and won.
3. Lipitor lowers blood pressure.
Lipitor (atorvastatin) is in the class of medicines called statins, which decrease cholesterol levels. Its competitors include Zocor, Zetia and Crestor.
Lipitor was introduced in 1996 with a small market share and a 15-year patent. Within six years of its launch, it became the best-selling legal drug in history and the first to top the $10 billion mark for annual sales. Since then, it has grossed more than $100 billion in sales worldwide. Forty-four million people around the world take Lipitor. For Pfizer, it has been a cash cow.
In the U.S. there are over 50,000 prescriptions written for Lipitor annually. In 2010 annual gross sales topped $13 billion, over $7 billion from the U.S. market alone. The average wholesale price of Lipitor is $147 for a one-month supply. The actual cost to patients depends on insurance status and co-pay.
Pharmaceutical manufacturers have been lining up to produce atorvastatin in anticipation of the expiration of Pfizer’s patent. Most patients needing statins take them for life. With established patients already using atorvastatin and newly diagnosed patients entering the market, pharmaceutical manufacturers are salivating at the prospect of having access to this drug. Merck, for example, has plans to combine atorvastatin with other cardiovascular medications.
Do not expect Pfizer to go quietly into that good night. They are negotiating with insurance companies and pharmacy benefit managers (middle men) to preserve their market share. In a direct appeal to patients, Pfizer now offers coupons to encourage current patients to stay with Lipitor, though Medicare and Medicaid recipients are not eligible.
When drugs are about to go off patent, the parent company generally sues a generic manufacturer crying (I’m paraphrasing), “You can’t make our drug, you wretched scoundrels.” Of course, they can. Of course, the parent company loses (as Pfizer did). But, by tying it up in the courts, Pfizer bought precious time, essentially extending their patent. For Pfizer, this delay tactic allowed them to rake in about $7 billion in sales.
For patients already taking Lipitor, switching to generic atorvastatin could eventually mean hundreds of dollars in savings annually, but not anytime soon. To date, there are only two companies approved to manufacture atorvastatin. In time, as more companies manufacture it, the price should noticeably decline.
Pfizer’s nightmare is a dream for the millions who take Lipitor.
Answers: 1. T 2. F 3. F
