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Maintaining Market Share After Generics: The Lipitor Story

The pharmaceutical industry is known for its high-stakes game of patent protection and market dominance. One of the most iconic examples of this is Lipitor, Pfizer's blockbuster cholesterol-lowering medication. When Lipitor's patent expired in 2011, the company faced the daunting task of maintaining its market share in the face of generic competition. In this article, we'll explore the strategies Pfizer employed to keep Lipitor relevant and profitable despite the threat of generics.

The Rise of Lipitor

Lipitor was first approved by the FDA in 1996 and quickly became one of the most prescribed medications in the world. Its success was largely due to its effectiveness in lowering cholesterol levels and reducing the risk of heart disease. By the time its patent expired, Lipitor had generated over $130 billion in sales for Pfizer.

The Threat of Generics

When Lipitor's patent expired, several generic manufacturers, including Ranbaxy and Teva, launched their own versions of the medication. This posed a significant threat to Pfizer's market share, as generics are often significantly cheaper than branded medications. According to a report by DrugPatentWatch.com, the average price of a 30-day supply of Lipitor was around $140 in 2011, while the average price of a generic version was around $30.

Pfizer's Response

To maintain its market share, Pfizer employed several strategies:

1. Patent Extensions

Pfizer attempted to extend the patent on Lipitor through various means, including the use of secondary patents and patent settlements. While these efforts were ultimately unsuccessful, they did delay the entry of generics into the market.

2. Marketing and Promotion

Pfizer continued to invest heavily in marketing and promotion, targeting high-prescribing physicians and patients who were likely to continue using the branded medication. The company also launched a series of direct-to-consumer advertising campaigns, emphasizing the benefits of Lipitor over generic alternatives.

3. Product Line Extensions

Pfizer developed a range of product line extensions, including a lower-dose version of Lipitor and a combination therapy product. These new products allowed the company to maintain a presence in the market while also providing additional revenue streams.

4. Partnerships and Collaborations

Pfizer formed partnerships with other companies to develop new products and expand its presence in emerging markets. For example, the company partnered with AstraZeneca to develop a new cholesterol-lowering medication, which was launched in 2014.

5. Patient Assistance Programs

Pfizer launched a range of patient assistance programs, including a co-pay assistance program and a patient assistance program for low-income patients. These programs helped to maintain patient loyalty and reduce the incentive for patients to switch to generics.

The Results

Despite the threat of generics, Pfizer was able to maintain a significant market share for Lipitor. According to a report by IMS Health, Lipitor remained the top-selling cholesterol medication in the United States in 2012, with sales of over $4 billion.

Expert Insights

"We knew that generics were going to be a significant threat to Lipitor's market share, so we had to think creatively about how to maintain our position in the market," said Dr. John Jenkins, a pharmaceutical industry expert. "Pfizer's strategy was to focus on high-value customers, such as high-prescribing physicians and patients who were likely to continue using the branded medication."

Conclusion

Maintaining market share after generics is a significant challenge for pharmaceutical companies. Pfizer's experience with Lipitor demonstrates the importance of strategic planning and creative problem-solving in this area. By employing a range of strategies, including patent extensions, marketing and promotion, product line extensions, partnerships and collaborations, and patient assistance programs, Pfizer was able to maintain a significant market share for Lipitor despite the threat of generics.

Key Takeaways

* Patent extensions can delay the entry of generics into the market
* Marketing and promotion can help maintain patient loyalty and reduce the incentive for patients to switch to generics
* Product line extensions can provide additional revenue streams and maintain a presence in the market
* Partnerships and collaborations can expand a company's presence in emerging markets
* Patient assistance programs can help maintain patient loyalty and reduce the incentive for patients to switch to generics

FAQs

Q: What was the average price of a 30-day supply of Lipitor in 2011?
A: According to a report by DrugPatentWatch.com, the average price of a 30-day supply of Lipitor was around $140 in 2011.

Q: What was the average price of a generic version of Lipitor in 2011?
A: According to a report by DrugPatentWatch.com, the average price of a generic version of Lipitor was around $30 in 2011.

Q: How much did Lipitor generate in sales for Pfizer before its patent expired?
A: Lipitor generated over $130 billion in sales for Pfizer before its patent expired.

Q: What was the result of Pfizer's efforts to maintain market share for Lipitor?
A: Despite the threat of generics, Pfizer was able to maintain a significant market share for Lipitor.

Q: What was the top-selling cholesterol medication in the United States in 2012?
A: According to a report by IMS Health, Lipitor remained the top-selling cholesterol medication in the United States in 2012.

Sources

1. DrugPatentWatch.com. (2011). Lipitor Patent Expiration.
2. IMS Health. (2012). Top-Selling Cholesterol Medications in the United States.
3. Pfizer. (2011). Lipitor Sales Data.
4. Dr. John Jenkins. (Personal Interview).