
It’s the end of an era for the pharmaceutical industry. Tomorrow, the most popular prescription drug in the world, Lipitor, is due to go off-patent in the US. And no product looks set to equal or surpass the cholesterol-lowering agent’s peak annual sales of $13.7 billion, which it achieved back in 2006.
Lipitor, known generically as atorvastatin, is used by nearly 9 million Americans and has made Pfizer more than $130 billion globally since its 1997 launch. As the drug stands poised at the edge of a proverbial patent cliff, analysts at EvaluatePharma forecast that the loss of the megablockbuster will rob the New York–based drug giant of its top spot in the pharmaceutical league rankings by revenue. As the expiry looms large, patients, pharmacies and the drug industry are all holding their breaths, waiting to see how the introduction of generic atorvastatin will affect them.
For long-term Lipitor users, the patent expiry should be great news. Although Pfizer is expected to take a huge hit with the loss of Lipitor’s exclusivity — about $10 billion a-year by some estimates — consumers should save big. The generic substitute for Lipitor is expected to eventually cost up to 90% less than Pfizer’s drug, and co-payments are expected to drop from an average of $25 per month to $10, saving patients about $180 per year, according to CBS News. To begin with, the Indian drugmaker Ranbaxy Laboratories will hold the exclusive right to manufacture and sell generic atorvastatin in the US, which should help keep the price of the drug relatively high through mid-2012. New Jersey-based Watson Laboratories will simultaneously sell a licensed generic, which will be manufactured by Pfizer. But after six months, other generic version of atorvastatin could flood the market, triggering prices to plummet, and thereby saving consumers and the US health system a whole lot of money.

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