Twitter
Advertisement

Is the Lipitor verdict a victory for Ranbaxy?

At long last, a US court gave its final ruling to settle the patent case for the $12 billion heart drug Lipitor.

Latest News
article-main
FacebookTwitterWhatsappLinkedin
Pillman

At long last, a US court gave its final ruling to settle the patent case for the $12 billion heart drug Lipitor.

And much to Ranbaxy’s satisfaction, it was a split ruling. While a large part of the win could be claimed by Pfizer, for Ranbaxy, too, it was a major victory to have invalidated patents of the world’s largest company for the world’s largest-selling drug.

A split ruling for Lipitor in the UK meant nothing for Ranbaxy, but that in the US came as a great satisfaction. The court handed out a 14-page judgement after all hearings concluded in May.

As per the judgement, Pfizer could remain safe with its claim for the basic patent, which expires in March 2010, but had to part with the patent on the salt of atorvastatin that was to expire in  June 2011.

This will mean that Pfizer’s monopoly over the drug will be reduced by at least 15 months, and going by its 9-12% growth currently, that will dent its topline.

But will Pfizer, the most aggressive defender of its patents, remain silent till that time? In its release issued immediately after the court decision, Pfizer has indicated that it will not give up the fight.

“The decision turned on a technical defect in the patent. There is a process for correcting such defects in the US Patent and Trademark Office, and Pfizer plans to pursue that option,” the company said in the statement.

This means that while delivering the judgement, the jury pointed at some technical gaps in Pfizer’s claim to the salt patent and not necessarily to Ranbaxy’s argument of obviousness and terming it invalid.

This is not all. Pfizer has said that there either party may seek full review of the petition.
Though there are not too many known cases of reversed decisions from the Federal circuit level, the grit of the world’s largest drug maker to fight its patents cannot be undermined. /R

Indeed, Ranbaxy will term it as a major win after a spate of cases went against it, but will Lipitor remain the top drug that it is today? In the next four years, doctors’ preferences in the US for Lipitor may undergo various changes.

On its part, Pfizer is going aggressive on Torcetrapib, branded as a more potent therapy than atorvastatin.

Then, there will be other statins that may come into play as statins are known to be a class of drugs that has been the most evolving over the last few years.

That apart, Pfizer is seeing changes. After serving Pfizer for 35 years and taking it convincingly to the numero uno position, its CEO Hank McKinnell is stepping down next year.

And it will be seemingly a more aggressive legally defended Pfizer after its vice-chairman and general counsel Jeffrey Kindlertakes takes over as the next CEO.

A lot of credit for Pfizer’s patent wins in the US lower court and the UK courts has gone to Jeff Kindler.

Pfizer will also be racing to secure its position as the top pharma company, as by 2010, it will also be churning out a few potential biotech blockbusters.  

Boosted by the part-win, Ranbaxy is all out to make a kill on Lipitor, though it will be able to take the benefit of the patent victory only in 2010.

But there are good possibilities that Pfizer may strip down Lipitor prices by aggressively promoting the drug through its authorised generic venture Greenstone.

Few know that after becoming a wholly owned subsidiary of Pfizer in 2003, today, Greenstone is among the top five US based generic companies. So, while Ranbaxy may start making calculations on its gains on Lipitor, its play may be spoilt with an authorised generic coming into the picture.

That again is a matter of chance. One of the much talked-about issues in the US generic /R market is a citizens’ petition to disband authorised generics.

If the courts decide to ban authorised generics, Ranbaxy can hope to see at least a billion dollars pouring in. And that will be a big enough gain to sustain it till the next leap comes its way.
Find your daily dose of news & explainers in your WhatsApp. Stay updated, Stay informed-  Follow DNA on WhatsApp.
Advertisement

Live tv

Advertisement
Advertisement