Biotech Values

[DewDiligence]

Teva Launches ‘At-Risk’ Generic Lipitor in UK

http://www.ft.com/cms/s/0/cd21640a-a593-11e0-83b2-00144feabdc0.html

›July 3, 2011 10:44 pm
By Andrew Jack in London

Teva, the world’s biggest generic drugs company, has probably generated more than £14m ($23m) in UK sales from its version of Lipitor, Pfizer’s blockbuster anti-cholesterol drug, in a short-term sales blitz last month launched defiantly before the patent expiry.

Industry experts estimated that the company shipped more than two months’ stock of atorvastatin – the generic name for Lipitor – in June. This comprised up to 700,000 packets of the drug, sold at a discount of at least 15 per cent to the previous trade price.

Teva’s move came before a High Court injunction sought by Pfizer to block the sales. The dispute highlights intensifying efforts by rival drug companies to tap sales from atorvastatin, the world’s top-selling prescription medicine, which generated $11bn in revenues last year for Pfizer.

Teva took the highly unusual decision in the UK of launching its cut-price version on June 20, before the patent expiry due next year and without a court ruling to support its case that the patent was invalid.

Pfizer then took legal action and won an injunction last week to stop further sales of Teva’s version. The US-based group also took the rare step of seeking to prevent drug distributors and pharmacies from selling it.

The freeze will remain in place at least until July 11, when the court will reconvene.

While the injunction prevents further sales of Teva’s version of Lipitor, the company moved swiftly to sell large quantities of its product to two wholesalers – AAH and Phoenix – which in turn rapidly sold them on to pharmacies.

Pfizer has been selling Lipitor exclusively through Alliance.

The pharmacies, which have not been subjected to the injunction, stand to benefit financially, since under current government rules they will pay the discounted generic price to the drug distributors while being reimbursed for the coming months by the National Health Service at the patented Lipitor price. [That’s a neat trick for the pharmacies!]

Teva is betting that it will be able to overturn the patent, while fostering brand loyalty among patients by taking the initiative and establishing itself as the first alternative supplier.

“The first mover has a huge commercial advantage,” said Douglas Campbell, a barrister at Three New Square, which specialises in intellectual property cases.

Teva said in a statement: “We feel strongly that we are acting in the interests of sustainable and affordable healthcare.” [Does this apply to Copaxone too? :- )] “We maintain our view that the patent protection in place for Lipitor is invalid; and we intend to win the case and resume supply as soon as possible.”

However, Pfizer stressed that it would “continue to pursue vigorously all appropriate legal remedies to prevent infringement of its valid intellectual property rights and [it] reserves the right to claim damages from any infringing party”.

It said that that could include fresh efforts to seek injunctions against pharmacies, even though the court last month rejected its efforts to include Rowlands, a high street chain, in the original freeze on sales.‹