Lipitor clone gets Ranbaxy $600 million

For the Gurgaon-based Ranbaxy Laboratories, the generic version of the world’s top-selling drug, the anti-cholesterol Lipitor (global sales: about $13 billion), has proved a whopping money-spinner during its exclusivity period of six months to May 29. Over $600 million has been raked in, a testimony to Ranbaxy’s successful monetisation of the exclusivity opportunity.

Ranbaxy’s CEO and MD Arun Sawhney told analysts in a conference call that the company enjoyed a 55% market share during the exclusivity period. “In the post-exclusivity period, we still have a share of about 40%.”

But, according to an analyst at a Mumbai-based brokerage, a 55% share is not something to crow about.

Companies can, and do, garner as much as 65-70% market share during exclusivity, the analyst said. “Ranbaxy’s market share is relatively low probably due to the presence of Watson (which holds the authorised generic status) and Pfizer’s discounts and incentives to retain patient loyalty towards branded Lipitor.”

The current 40% share of Ranbaxy may be also under threat as the post-exclusivity period has seen other generic players such as Apotex, Mylan, Sandoz and Dr Reddy’s Laboratories entering the generic Lipitor market.

Sawhney said Ranbaxy will focus on its malaria drug Synriam, launched in emerging economies in April. Synriam, a combination of two existing molecules, will be taken to India, Africa, South America and South East Asia.