Pfizer in generic Lipitor deals with Sanofi and Dr Reddy's

Global drugs behemoth Pfizer (NYSE: PFE) has reached agreement with French drug major Sanofi (Euronext: SAN) for the latter to make a generic of its all-time blockbuster cholesterol lowerer Lipitor (atorvastatin), which - despite the advent of generic competition in some markets - last year still generated revenues of $11 billion, but which will lose patent protection in the all important US market at the end of November this year.

According to the French Les Echos newspaper, citing two sources close to the matter, reported on Thursday that Sanofi's generic drug subsidiary Zentiva will be allowed to produce Lipitor's active ingredient atorvastatin in France possibly even before the patent's expiry in that country on May 7, 2012.

Les Echos notes that the deal is part of France's Strategic Council of Health Industries (CSIS) program, a cooperation agreement between the sector and the government, which gives the original drugmaker a tax break if it allows a generic drugmaker to produce and sell cheaper copies as the branded drug's patent expires. The CSIS agreement is aimed to keep production sites and employment in France, the newspaper noted.