Pfizer reaches settlement to delay generic Lipitor

Share this article:
Pfizer regroups businesses under global umbrellas
Pfizer regroups businesses under global umbrellas

Pfizer bought some extra time for its blockbuster cholesterol drug Lipitor (atorvastatin) by reaching a settlement with Ranbaxy Laboratories delaying the US launch of a generic version of the world's top selling pharmaceutical brand.

Under the deal, Ranbaxy will gain license to sell generic versions of Lipitor and Caduet, in the US effective November 30, 2011 – about 20 months after the main patent on atorvastatin is scheduled to expire. (Caduet combines the active ingredients of Lipitor and Norvasc to treat high blood pressure and high cholesterol). Pfizer initially sued to block introduction of a generic Lipitor version until 2016.

Sales of Lipitor in 2007 sales were at $12.7 billion – roughly one-fourth of Pfizer's total company sales.

Under the agreement, Ranbaxy will also have a license to sell atorvastatin on varying dates in an additional seven countries, including: Canada, Belgium, Netherlands, Germany, Sweden, Italy and Australia. Ranbaxy and Pfizer have also resolved their disputes regarding the atorvastatin compound in Malaysia, Brunei, Peru and Vietnam, the companies said.

In an investor note this morning, Deutsche Bank analyst Barbara Ryan wrote: “The delay in generic availability adds about $5 billion in revenues in both 2010 and 2011 or roughly $4 billion in free cash flow each year. The current annual dividend payment is about $9 billion and Pfizer's free cash flow with this settlement should remain at about $18 billion per year through 2011.”

 

Share this article:

Email Newsletters

More in News

Allergan touts reorg, plans to lay off 13% of workforce

Allergan touts reorg, plans to lay off 13% ...

Allergan's second-quarter earnings, and a new round of cuts, are now part of the Botox maker's record as it seeks to remain independent.

Shire, AbbVie join forces for $55B

Shire, AbbVie join forces for $55B

The deal includes a $1.6-billion fee if AbbVie tries to walk away.

Next target for hep. C drugmakers: co-infections

Next target for hep. C drugmakers: co-infections

An international AIDS conference this weekend kicked off a new battle in the war against hepatitis C: demonstrating high cure rates in those who are co-infected.