Payers' outlook for Pfizer's Lipitor generic strategy not rosy; second Caduet copy launched by Ranbaxy

Reimbursement Intelligence, a USA-based market-research firm, has announced how payers predict the impact of US drugs behemoth Pfizer's (NYSE: PFE) radical strategy relating to its just off-off patent in the USA all-time best selling pharmaceutical product Lipitor (atorvastatin) to stay in favor of consumers (The Pharma Letter December 1).

The survey examined 40 national and regional health plans covering 100 million lives to see how Pfizer will fare. The eyes of the pharmaceutical industry and Wall Street are anticipating the impact of this revolutionary new path to patent expiration. Predictions are skeptical about Pfizer's approach to stem the tide of generic erosion in the first 180 days. After the initial 180 day period, 50% of payers expect Pfizer to lose more than 60% market share for the cholesterol lowerer.

"What Pfizer is doing is groundbreaking, because they are taking a very aggressive step to stop erosion," stated Rhonda Greenapple, chief executive of Reimbursement Intelligence, noting: "From our research, Pfizer's pay-to-play will prevent 25% market share loss compared to similar scenarios in the initial six months."