Impact of Lipitor Patent Expiry on Pfizer.

4174 Words17 Pages
IMPACT OF LIPITOR PATENT EXPIRY ON PFIZER.

TABLE OF CONTENTS PAGE NO
Executive Summary 3
CHAPTER 1: INTRODUCTION
1.1 Introduction 4
1.2 What is Lipitor 5
1.3Expiry of Lipitor patent 5-6
CHAPTER 2: CHALLENGERS
2.1 Challengers 6
2.2 Pfizer’s strategies 7
CHAPTER 3:FINANCIAL IMPACT ON PFIZER
AS LIPITOR GOES GENERIC 8-9
Recommendations 10
Conclusion 11

Executive summary:
This report is about the impact of patent termination of Lipitor on Pfizer pharmaceutical company. Lipitor has been in the market since 1997 and is the mother of all drugs. (wsj_live, 2011) As of November 30th 2011 Pfizer lost the patent of Lipitor
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In the first year it generated revenues of 67.8$ billion and net income of 8.26$ billion. (philippidis, 2011)Pfizer is the largest player in the pharmaceutical market having the best power in marketing and forming associations. It also posts the highest dividends in the industry. Pfizer faces challenges common to all pharmaceutical companies such as patent expiration and FDA regulation. It is dedicated to applying science and global resources to progress health and well-being at every stage of life. Subsidiary members are Agouron pharmaceuticals, G.D Searle & company, Greenstone, Park- Davis, Wyeth, Pharmacia, Upjohn, Warner &lambert. (control, 2011)
Pfizer‘s ceo Ian Reid announced that company would dissociate substantial portions of the company with the aim to focus on pharmaceuticals. Its business is divided into two divisions which are biopharmaceutical with 86% of revenues which consists of primary care, speciality care, established products, emerging markets and oncology. The diversified makes 14% of revenues which consists of consumer healthcare, animal health, nutrition among others. Some major products of biopharmaceutical (86%of total revenue) are; (sanburn, 2011)
Lipitor- statin that decreases LDL levels, best-selling and and the most important for Pfizer as it contributes significantly to the growth of the company. However, the patent expired opening it to competition with the generic drugs.
Enbrel- for arthritis, plaque psoriasis ankylosing
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