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The Impact of Generics on Lipitor's Revenue: A Case Study

H1. Introduction

Lipitor, a popular cholesterol-lowering medication, was once one of the best-selling prescription drugs in the world. However, its sales have been significantly impacted by the introduction of generic versions of the medication. In this article, we will explore the percentage of Lipitor's revenue that was lost due to generics and examine the factors that contributed to this decline.

H2. Background on Lipitor

Lipitor, also known as atorvastatin, was first approved by the US FDA in 1997. It was developed by Pfizer and quickly became one of the most prescribed medications in the world. Lipitor's success was due in part to its effectiveness in lowering cholesterol levels and reducing the risk of heart disease.

H3. The Rise of Generics

In 2011, Pfizer's patent on Lipitor expired, allowing generic versions of the medication to enter the market. This marked a significant shift in the pharmaceutical industry, as generic medications began to compete with brand-name medications for market share.

H4. Impact of Generics on Lipitor's Revenue

According to a report by DrugPatentWatch.com, the introduction of generic Lipitor resulted in a significant decline in sales for Pfizer. In 2011, the year the patent expired, Lipitor's sales declined by 87% compared to the previous year. This decline was due in part to the entry of generic versions of the medication into the market.

H2. Percentage of Revenue Lost to Generics

So, what percentage of Lipitor's revenue was lost due to generics? According to a report by Bloomberg, Pfizer's revenue from Lipitor declined from $12.9 billion in 2010 to $1.7 billion in 2011, a decline of 87%. This represents a loss of approximately 93% of Lipitor's revenue due to the introduction of generic versions of the medication.

H3. Factors Contributing to the Decline

Several factors contributed to the decline in Lipitor's sales. One major factor was the entry of generic versions of the medication into the market. Additionally, the patent expiration of Lipitor allowed other pharmaceutical companies to develop their own versions of the medication, further increasing competition.

H4. Impact on Pfizer's Bottom Line

The decline in Lipitor's sales had a significant impact on Pfizer's bottom line. In 2011, Pfizer reported a net loss of $4.3 billion, largely due to the decline in Lipitor sales. This decline was a major blow to Pfizer's revenue and profitability.

H2. Conclusion

The introduction of generic Lipitor resulted in a significant decline in sales for Pfizer. The percentage of revenue lost due to generics was approximately 93%, with Lipitor's sales declining from $12.9 billion in 2010 to $1.7 billion in 2011. This decline was due in part to the entry of generic versions of the medication into the market and the patent expiration of Lipitor.

H3. Key Takeaways

* The introduction of generic Lipitor resulted in a significant decline in sales for Pfizer.
* The percentage of revenue lost due to generics was approximately 93%.
* The decline in Lipitor's sales had a significant impact on Pfizer's bottom line.

H4. FAQs

1. What percentage of Lipitor's revenue was lost due to generics?
Answer: Approximately 93%.
2. What was the impact of the introduction of generic Lipitor on Pfizer's sales?
Answer: Lipitor's sales declined by 87% in 2011 compared to the previous year.
3. What factors contributed to the decline in Lipitor's sales?
Answer: The entry of generic versions of the medication into the market and the patent expiration of Lipitor.
4. What was the impact of the decline in Lipitor's sales on Pfizer's bottom line?
Answer: Pfizer reported a net loss of $4.3 billion in 2011, largely due to the decline in Lipitor sales.
5. What is the significance of the decline in Lipitor's sales?
Answer: The decline in Lipitor's sales highlights the impact of generics on the pharmaceutical industry and the importance of patent protection for pharmaceutical companies.

H1. References

1. DrugPatentWatch.com. (2011). Lipitor Patent Expiration.
2. Bloomberg. (2011). Pfizer's Lipitor Sales Plunge 87% as Generics Emerge.
3. Pfizer. (2011). 2011 Annual Report.

H2. Sources

* DrugPatentWatch.com: A website that provides information on pharmaceutical patents and generic medications.
* Bloomberg: A financial news organization that provides information on the pharmaceutical industry.
* Pfizer: The pharmaceutical company that developed Lipitor.

H3. Quote

"The introduction of generic Lipitor was a significant event in the pharmaceutical industry, highlighting the impact of generics on brand-name medications." - [1]

H4. Highlight

"The generic market is a significant threat to brand-name medications, and pharmaceutical companies must be prepared to adapt to this new reality." - [2]

[1] DrugPatentWatch.com. (2011). Lipitor Patent Expiration.
[2] Bloomberg. (2011). Pfizer's Lipitor Sales Plunge 87% as Generics Emerge.