Watson launches first generic Lipitor in US
pharmafile | November 30, 2011 | News story | Sales and Marketing | Lipitor, Pfizer, Watson, atorvastin
Watson Pharmaceuticals has launched its generic version of Pfizer’s blockbuster statin Lipitor as the drug goes off patent in the US.
Watson has launched Lipitor (atorvastatin) as part of an exclusive agreement with Pfizer, and said it had started shipping the product today.
The drug is the biggest selling in history, making Pfizer over $13 billion in peak annual sales.
Under the terms of the agreement Pfizer will manufacture and supply Watson with all dosage strengths of the authorised generic product, whilst Watson will market and distribute the product in the US.
Pfizer will receive a 70% share of the net sales from Watson’s sales of the product, according to investors Sanford C. Bernstein & Company. The agreement between the firms will run for five years; other terms of the deal have not been disclosed.
The Indian firm Ranbaxy, a subsidiary of Daiichi Sankyo, is also planning to launch its generic version of the drug later this week.
But Ranbaxy has had to deal with a number of problems with its version of the drug.
The firm has been in dispute with the FDA since 2008 when the Agency gave Ranbaxy an import ban over manufacturing violations at two plants in India.
This has delayed the final approval from the FDA for its Lipitor copy, but the firm told the New York Times it should be ready for launch this Thursday.
These generics will hit Lipitor’s revenue but the real test for Pfizer will be in six months’ time when other generic firms are able to launch their version of the drug.
Currently, under US law, generic competition is limited in the first 180 days after a patent loses its protection, but after this period any company can enter the generic market, and prices can drop steeply as competition increases.
Pfizer to hang on to Lipitor revenues
But Pfizer is not willing to let go of its biggest selling drug so easily and has already forged plans with US pharmacists and insurers in an effort to undercut any generic rivals.
Speaking to the New York Times newspaper David Simmons, president and general manager of Pfizer’s established products unit, said his company’s aim was to keep Lipitor “at or below generics’ cost to the health care system,” with these deals.
In addition to this Pfizer has also initiated a mail order plan for the drug with Michigan-based Diplomat Specialty Pharmacy, which will post the drugs to patients who order them and invoice the patients’ medical insurance companies.
Those who have a Pfizer contract would pay the generic price for Lipitor with others paying a higher price, according to the Wall Street Journal.
Ben Adams
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