Pfizer's Lipitor New Strategy for Patent Expired
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行銷管理與顧客分析
2012/1/31
Pfizer’s Lipitor new strategy for patent expired
NTU EMBA 100B
Paul, Wai-Hou Chan
陳惠濠
Table of Contents
I. Introduction
II. About Lipitor (Atorvastatin)
III. Pfizer’s strategy
IV. Patients seem to benefit from Pfizer’s new strategy
V. Potentially profitable for retailers
VI. Pfizer after Lipitor
VII. Is Pfizer’s Lipitor strategy working?
VIII. Wholesaler Profits: Brand vs. Generic drug
IX. Pfizer is hoping to sell Lipitor to consumers over the counter (OTC)
X. Discussion
XI. References
Introduction
Lipitor (Atorvastatin), the best-selling prescription medication in the United States in
2010, earned more than $7 billion in total revenue. Lipitor’s patent expired in June
2011. Lipitor came on the market in 1997. According to CNBC (Consumer News and
Business Channel), it has yielded nearly $100 billion for Pfizer which represents
about a quarter of Pfizer’s total revenue over the past decade. When a drug’s patent
expires, the first generic company to file is usually granted a six-month period of
exclusivity to offer the generic version of the drug. Following the initial six-month
exclusivity period, additional generics companies are allowed to offer the drug and
the market quickly becomes commoditized. Typically, the exclusivity period results in
prices 25% below the original brand price, followed by continued price erosion to as
much as 80% or more as multiple generics enter the market. In the past, upon patent
expiration, the original drug maker would often raise the price of the brand to offset
some of the volume decline and usually shift commercial focus to its newer products.
Ultimately the brand would retain less than 10 percent of the market share by volume
(usually 3-5% after a few years). However, Pfizer has implemented a new, aggressive
post-patent strategy to maintain as much of the Lipitor market
行銷管理與顧客分析
2012/1/31
Pfizer’s Lipitor new strategy for patent expired
NTU EMBA 100B
Paul, Wai-Hou Chan
陳惠濠
Table of Contents
I. Introduction
II. About Lipitor (Atorvastatin)
III. Pfizer’s strategy
IV. Patients seem to benefit from Pfizer’s new strategy
V. Potentially profitable for retailers
VI. Pfizer after Lipitor
VII. Is Pfizer’s Lipitor strategy working?
VIII. Wholesaler Profits: Brand vs. Generic drug
IX. Pfizer is hoping to sell Lipitor to consumers over the counter (OTC)
X. Discussion
XI. References
Introduction
Lipitor (Atorvastatin), the best-selling prescription medication in the United States in
2010, earned more than $7 billion in total revenue. Lipitor’s patent expired in June
2011. Lipitor came on the market in 1997. According to CNBC (Consumer News and
Business Channel), it has yielded nearly $100 billion for Pfizer which represents
about a quarter of Pfizer’s total revenue over the past decade. When a drug’s patent
expires, the first generic company to file is usually granted a six-month period of
exclusivity to offer the generic version of the drug. Following the initial six-month
exclusivity period, additional generics companies are allowed to offer the drug and
the market quickly becomes commoditized. Typically, the exclusivity period results in
prices 25% below the original brand price, followed by continued price erosion to as
much as 80% or more as multiple generics enter the market. In the past, upon patent
expiration, the original drug maker would often raise the price of the brand to offset
some of the volume decline and usually shift commercial focus to its newer products.
Ultimately the brand would retain less than 10 percent of the market share by volume
(usually 3-5% after a few years). However, Pfizer has implemented a new, aggressive
post-patent strategy to maintain as much of the Lipitor market
References: 1. Cynthia A. Jackevicius, Pharm.D., Mindy M. Chou, Pharm.D., Joseph S. Ross, M.D., M.H.S., Nilay D. Shah, Ph.D., and Harlan M. Krumholz, M.D. January 19, 2012, Generic Atorvastatin and Health Care Costs, N Engl J Med 2012; 366:201-204 2. Niteesh K. Choudhry, M.D., Ph.D., and William H. Shrank, M.D., M.S.H.S. November 11, 2010, Four-Dollar Generics — Increased Accessibility, Impaired Quality Assurance, N Engl J Med 2010; 363:1885-1887 3. Michael O 'Riordan, August 4, 2011, Pfizer wants atorvastatin available over the counter: Wall Street Journal Available at: http://theheart.org 4. Pfizer’s Lipitor Strategy Changes the Generics Game, Posted on November 30, 2011, Available at: http://bournepartners.wordpress.com 5. Philip Kotler, Kevin Lane Keller, Swee Hoon Ang, Siew Meng Leong, Chin Tiong Tan,(2009). Marketing Management An Asian Perspective (5th ed.) Singapore: Pearson Education