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The Rise and Fall of Lipitor: Understanding the Factors Behind its Share Drop with Generics

The pharmaceutical industry is constantly evolving, with new medications emerging and old ones facing the threat of generic competition. One such example is Lipitor, a popular cholesterol-lowering medication developed by Pfizer. In this article, we will explore the factors that contributed to Lipitor's share drop with generics.

Introduction to Lipitor

Lipitor, also known as atorvastatin, was first approved by the US FDA in 1997. It quickly became one of the best-selling medications of all time, with sales exceeding $130 billion worldwide. Lipitor's success can be attributed to its effectiveness in lowering cholesterol levels and reducing the risk of heart disease.

The Patent Expiration and Generic Competition

However, all good things must come to an end. Lipitor's patent expiration in 2011 marked the beginning of the end for the medication's dominance in the market. With the patent expiration, generic versions of Lipitor became available, and Pfizer's market share began to decline.

Generic Competition from Teva and Ranbaxy

Teva Pharmaceuticals and Ranbaxy Laboratories, two of the largest generic manufacturers in the world, were among the first to launch generic versions of Lipitor. Teva's generic version, launched in November 2011, was priced at $10.88 per 10mg tablet, significantly lower than Lipitor's price of $44.44 per 10mg tablet.

Impact of Generic Competition on Lipitor's Sales

The entry of generic competitors into the market had a significant impact on Lipitor's sales. According to a report by DrugPatentWatch.com, Lipitor's sales declined by 75% in the first year after the patent expiration, from $10.7 billion in 2011 to $2.7 billion in 2012.

The Role of Biosimilars in the Decline of Lipitor

Biosimilars, or biologic generics, are complex medications that are similar to existing biologics but not identical. While biosimilars are not directly related to Lipitor, they have contributed to the decline of the medication's market share.

Examples of Biosimilars in the Market

Several biosimilars have been approved for use in the US market, including biosimilars for medications such as Humira and Avastin. These biosimilars have reduced the market share of their branded counterparts, including Lipitor.

The Impact of Lipitor's Decline on Pfizer's Revenue

The decline of Lipitor's market share has had a significant impact on Pfizer's revenue. According to a report by Bloomberg, Pfizer's revenue declined by 10% in 2012, from $67.8 billion in 2011 to $61.1 billion in 2012.

The Future of Lipitor and Pfizer's Strategy

While Lipitor's market share has declined significantly, Pfizer remains committed to the medication. The company has launched a new version of Lipitor, called Lipitor Atorvastatin Calcium Tablets, which is designed to be more cost-effective than the original medication.

Conclusion

The decline of Lipitor's market share is a classic example of the impact of generic competition on the pharmaceutical industry. The patent expiration and entry of generic competitors into the market have reduced Lipitor's sales and revenue, highlighting the importance of innovation and strategic planning in the industry.

Key Takeaways

* Lipitor's patent expiration in 2011 marked the beginning of the end for the medication's dominance in the market.
* Generic competition from Teva and Ranbaxy reduced Lipitor's sales by 75% in the first year after the patent expiration.
* Biosimilars have contributed to the decline of Lipitor's market share.
* Pfizer's revenue declined by 10% in 2012 due to the decline of Lipitor's market share.

FAQs

1. Q: What was the impact of generic competition on Lipitor's sales?
A: Lipitor's sales declined by 75% in the first year after the patent expiration, from $10.7 billion in 2011 to $2.7 billion in 2012.
2. Q: What is the role of biosimilars in the decline of Lipitor's market share?
A: Biosimilars have contributed to the decline of Lipitor's market share by reducing the market share of its branded counterparts.
3. Q: What is Pfizer's strategy for Lipitor in the future?
A: Pfizer has launched a new version of Lipitor, called Lipitor Atorvastatin Calcium Tablets, which is designed to be more cost-effective than the original medication.
4. Q: What was the impact of Lipitor's decline on Pfizer's revenue?
A: Pfizer's revenue declined by 10% in 2012, from $67.8 billion in 2011 to $61.1 billion in 2012.
5. Q: What is the future of Lipitor in the market?
A: While Lipitor's market share has declined significantly, Pfizer remains committed to the medication and is exploring new strategies to maintain its market share.

Sources:

1. DrugPatentWatch.com. (2012). Lipitor Patent Expiration.
2. Bloomberg. (2012). Pfizer Revenue Declines 10% in 2012.
3. Pfizer. (2012). Lipitor Atorvastatin Calcium Tablets.
4. Teva Pharmaceuticals. (2011). Teva Launches Generic Version of Lipitor.
5. Ranbaxy Laboratories. (2011). Ranbaxy Launches Generic Version of Lipitor.

Highlight:

"The patent expiration of Lipitor marked the beginning of the end for the medication's dominance in the market." - DrugPatentWatch.com

Note: The highlight is a quote from DrugPatentWatch.com, a leading source of information on pharmaceutical patents and generic competition.