Pfizer Cuts Research for Lipitor
Pfizer is moving research dollars away from Lipitor and heart disease research so that it can go after potential profits in cancer, diabetes and Alzheimer’s disease drugs. Lipitor has been Pfizer’s blockbuster drug as well as the highest selling pill on record. Last year, Lipitor made almost $13 billion in revenue, accounting for 25% of Pfizer’s sales.
A major reason for Pfizer’s shift in direction is its soon-to-expire patent protection on Lipitor in 2011. Furthermore, Lipitor has been losing part of its market in the last couple years to the generic form of its rival, Zocor, produced by Merck. This started when Merck’s patent ran out and health insurance companies began initiatives to support the generic form of Zocor called Simvastatin. Since then, patients have been switching over to this cheaper cholesterol lowering drug.
In addition to stopping research, Pfizer will sell several of its current early stage heart disease medicines because they don’t believe they will be profitable enough.
As Pfizer restructures, they will also be starting three new business branches in 2009. The branches will include primary care, specialty care, and emerging markets. The primary care branch will continue to work with doctors to increase and promote the use of Lipitor like drugs.
What do you think of Pfizer’s choice to stop research in heart disease medicines? What effects do you think this will have on the current market? Please share your opinions!