See the DrugPatentWatch profile for lipitor
The cost of Lipitor, a popular cholesterol-lowering drug, can vary significantly due to several factors. One of the primary factors is the patent status of the drug [1]. When a drug is under patent, the manufacturer holds exclusive rights to produce and sell the drug, often resulting in higher prices due to lack of competition. Once the patent expires, other manufacturers can produce generic versions of the drug, increasing competition and typically driving down costs.
Lipitor, also known as atorvastatin, was originally manufactured by Pfizer and held patent protection until 2011 in the United States [1]. After the patent expired, other pharmaceutical companies began producing generic atorvastatin, leading to a decrease in prices [1]. However, even generic drugs can have varying costs due to differences in manufacturing, distribution, and marketing costs [2].
An additional factor contributing to the cost difference is the pricing strategies of pharmaceutical companies, which can be influenced by market competition, research and development investments, and marketing efforts [3]. Furthermore, the cost of Lipitor can vary based on the dosage, quantity, and form of the medication, as well as the pharmacy or healthcare provider from which it is obtained [4].
In summary, the cost difference of Lipitor is primarily caused by patent status, pricing strategies of pharmaceutical companies, and variations in manufacturing, distribution, and marketing costs.
Sources:
[1] DrugPatentWatch.com. (n.d.). Atorvastatin (Lipitor) Patent Expiration and Generic Entry. Retrieved from
https://www.drugpatentwatch.com/patent/atorvastatin-lipitor/
[2] Harvard Health Publishing. (2020, August 11). The real reason generic drugs cost so much. Harvard Health. Retrieved from
https://www.health.harvard.edu/blog/the-real-reason-generic-drugs-cost-so-much-2020081120538
[3] Grabowski, H. G., & Vernon, J. R. (2015). Generic entry and the price of pharmaceuticals. Journal of health economics, 41, 1-6. doi:10.1016/j.jhealeco.2015.04.004
[4] GoodRx. (n.d.). Atorvastatin (Lipitor) Prices, Coupons and Patient Assistance. Retrieved from
https://www.goodrx.com/atorvastatin