At the end of the month Pfizer will lose its patent on Lipitor, the billion dollar cholesterol drug. As discussed in previous posts once a drug loses its patent the revenues it generates decrease drastically. Pfizer is taking steps to attempt to lessen this revenue loss in the coming months and long term.
Pfizer’s goal is to retain a forty percent market share after the first six months of generic competition. In comparison within the first two months of generic competition a branded drugs market share usually falls to below forty percent and to twenty percent after six months. In these first six months Pfizer will have competition from two authorized generics, Watson Pharmaceuticals Inc. and Ranbaxy Laboratories Ltd. After the first six months even more generics are expected to enter the market even further eroding Pfizer’s market share.
In order to achieve this goal Pfizer has started giving patients a card that allows for four-dollar monthly co-pay if they stay on branded Lipitor. They have also started a “Lipitor for you” program that will last until December of 2012. This program includes the four-dollar co-pay card, direct prescription delivery, and email reminders. The program is also available to those who do not have insurance.
In the long term Pfizer is attempting to get FDA approval to sell Lipitor as an over the counter medication. Previous attempts by Merck & Co. to sell their cholesterol medication Mevacor were unsuccessful, as the FDA feared people would not be able to make good decisions.
Sources:
http://online.wsj.com/article/SB10001424052970204528204577011492595048250.html
It should be interesting to see what happens to Pfizer in the long run. Lipitor was a huge revenue builder for them, but they have some pretty promising drugs in the pipeline too. I've been hearing about these new co-pay cards and loyalty programs from the big companies. Do you think they work as a marketing tool, Matt? Can Pfizer even hope to compete with generics when their patent expires?
ReplyDeleteIn the long run I don't see them being able to compete with generics, but I do believe the strategies they are implementing could substantially slow down their loss of market share. As far as marketing goes it will be great if Lipitor becomes over the counter, but I don't see them serving that purpose as long as the drugs are for life threatening conditions that require a prescription.
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