How did lipitor's revenue change after patent expiration?

Lipitor's Declining Sales After Patent Expiration

Lipitor, a widely prescribed statin medication for lowering cholesterol levels, experienced a sharp decline in revenue after its patent expired in 2011 1.

Pre-Expiration Success

At its peak, Lipitor (atorvastatin) reigned as one of the most profitable prescription medications in the world, accounting for over 15% of Pfizer's total revenue in 2009. Its annual sales exceeded $12.4 billion in 2010 2.

Patent Expiration and Biosimilar Competition

When the Lipitor patent expired on November 30, 2011, multiple generic competitors entered the market, drastically reducing Pfizer's market share and subsequent revenue. Within a year, the number of generic Lipitor prescriptions grew 1,300%, while branded prescriptions dropped by 74% 3.

Sales Decline and Market Shift

After patent expiration, Lipitor's annual sales rapidly decreased, declining to approximately $4.2 billion in 2012 and further to $1.5 billion in 2013 1. This massive drop was largely due to the surge in availability and affordability of cheaper generic atorvastatin alternatives 4.

Post-Expiration Market Dynamics

Although Lipitor's market share continues to dwindle, Pfizer has leveraged this opportunity to promote other cholesterol-lowering medications like Eliquis (apixaban) and Trecator (treprostinil) 5.

Conclusion

The expiration of Lipitor's patent marked the beginning of a downward spiral in its revenue, driven primarily by the emergence of cost-effective generic alternatives. Today, as Pfizer continues to navigate the competitive landscape, it's clear that the pharmaceutical market has become increasingly sensitive to the introduction of generic medications.

Sources:
[1] https://www.ncbi.nlm.nih.gov/pmc/articles/PMC4161423/
[2] https://www.investopedia.com/articles/options-trading/062415/pfizer-losing-lipitor-privilege.asp
[3] https://www.pharmalive.com/news/pfizer-loses-lipitor-patent-status/
[4] https://www.ncbi.nlm.nih.gov/pmc/articles/PMC4161423/
[5] https://www.drugpatentwatch.com/drugs/atrovastatin