What, After Patent Expiry?

This paper discusses about the various steps adopted by pharmaceutical companies to continue reaping the benefit of their blockbuster drugs after their patents expire. The first section explains about the different strategies which can be adopted to compete against generics after the expiry. Second section discusses about the strategy adopted by Pfizer for its blockbuster drug Lipitor. It also brings into light the use of Co-pay cards, (generally used for sample introduction and patient assistance programs) as a medium for fighting against generics. The third section explains how direct to patient (DTP) distribution channel can help brands fight against generics and using central fill pharmacies as a mode of DTP distribution. Introduction Patent expiry has always been a concern for pharmaceutical companies as it takes away a major source of revenue from them. Drugs such as Lexapro (manufactured by Forest Pharmaceuticals) and Actos (manufactured by Takeda) whose patents have expired recently contributed to around 59% and 53% of company?s revenue respectively. The subject of patent expiry has been a major topic of discussion in the recent days because blockbuster drugs like Celebrex, Nexium, Micardis, Plavix and Singulair are approaching the Patent Cliff during the period 2012 ? 2014. In order to better understand the strategy adopted by pharmaceutical companies to compete against generics. It is important to know the dynamics of switch from branded drugs to generic drugs and its impact on the market.