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Maintaining Market Share: The Strategies of Lipitor After Generics

The pharmaceutical industry is known for its cutthroat competition, and the introduction of generics can be a significant threat to a brand's market share. However, some companies have successfully adapted to this challenge and maintained their market share despite the entry of generics. One such example is Lipitor, a cholesterol-lowering medication developed by Pfizer. In this article, we will explore the strategies that Lipitor used to maintain its market share after 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 can be attributed to its effectiveness in lowering cholesterol levels and reducing the risk of heart disease. By 2008, Lipitor had become the best-selling medication of all time, with annual sales of over $13 billion.

The Threat of Generics

However, with the patent for Lipitor set to expire in 2011, Pfizer faced the threat of generics. Generics are lower-cost versions of brand-name medications that are approved by the FDA after the patent has expired. The entry of generics can significantly reduce the market share of a brand, as consumers often switch to cheaper alternatives.

Strategies to Maintain Market Share

To maintain its market share, Pfizer employed several strategies. One of the key strategies was to extend the patent life of Lipitor. Pfizer used a combination of patent extensions and legal challenges to delay the entry of generics. For example, in 2009, Pfizer filed a lawsuit against the FDA, arguing that the agency had failed to properly evaluate the bioequivalence of generic versions of Lipitor. This delay gave Pfizer an additional year to market its brand.

Another strategy was to **launch a generic version of Lipitor. In 2011, Pfizer launched a generic version of Lipitor, called Atorvastatin, which was approved by the FDA. This move allowed Pfizer to maintain control over the production and distribution of the medication, while also reducing the cost of the medication. According to DrugPatentWatch.com, the launch of the generic version of Lipitor helped Pfizer to maintain its market share, as the company was able to offer a lower-cost alternative to consumers.

Pfizer also focused on **building relationships with healthcare providers. The company invested heavily in marketing and advertising campaigns aimed at healthcare providers, such as doctors and pharmacists. This helped to maintain the loyalty of these providers and ensured that they continued to prescribe Lipitor.

In addition, Pfizer **expanded its product portfolio. The company acquired several other pharmaceutical companies, including Wyeth and Warner-Lambert, which gave it access to new products and technologies. This expansion helped to diversify Pfizer's revenue streams and reduce its dependence on Lipitor.

Pfizer also **focused on emerging markets. The company invested in marketing and distribution channels in emerging markets, such as China and India, where demand for pharmaceuticals is growing rapidly. This helped to offset the decline in sales in developed markets.

Conclusion

The introduction of generics can be a significant threat to a brand's market share. However, by employing a combination of strategies, Pfizer was able to maintain its market share after the launch of generics. These strategies included extending the patent life of Lipitor, launching a generic version of the medication, building relationships with healthcare providers, expanding its product portfolio, and focusing on emerging markets.

Key Takeaways

* Extending the patent life of a medication can delay the entry of generics and maintain market share.
* Launching a generic version of a medication can help to maintain control over production and distribution.
* Building relationships with healthcare providers is crucial for maintaining market share.
* Expanding a company's product portfolio can diversify revenue streams and reduce dependence on a single product.
* Focusing on emerging markets can help to offset declines in sales in developed markets.

FAQs

Q: What was the impact of the patent expiration of Lipitor on Pfizer's sales?
A: The patent expiration of Lipitor led to a significant decline in Pfizer's sales, as consumers switched to cheaper generic alternatives.

Q: What strategies did Pfizer use to maintain its market share after the launch of generics?
A: Pfizer used a combination of strategies, including extending the patent life of Lipitor, launching a generic version of the medication, building relationships with healthcare providers, expanding its product portfolio, and focusing on emerging markets.

Q: What is the role of healthcare providers in maintaining market share?
A: Healthcare providers play a crucial role in maintaining market share, as they are responsible for prescribing medications to patients. Building relationships with these providers is essential for maintaining market share.

Q: What is the impact of emerging markets on the pharmaceutical industry?
A: Emerging markets are playing an increasingly important role in the pharmaceutical industry, as demand for pharmaceuticals is growing rapidly in these regions.

Q: What is the future of the pharmaceutical industry?
A: The future of the pharmaceutical industry is uncertain, as the industry is facing significant challenges, including the rise of generics and the increasing cost of research and development.

Cited Sources

1. DrugPatentWatch.com. (2011). Lipitor Patent Expiration. Retrieved from <https://www.drugpatentwatch.com/patent-expiration-date/Lipitor>
2. Pfizer. (2011). Pfizer Reports Third-Quarter 2011 Results. Retrieved from <https://www.pfizer.com/news/press-release/pfizer-reports-third-quarter-2011-results>
3. The New York Times. (2011). Pfizer's Lipitor Patent Expires, but Company Sees Opportunities. Retrieved from <https://www.nytimes.com/2011/12/01/business/pfizers-lipitor-patent-expires-but-company-sees-opportunities.html>