The Marketing of Statins

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The Future of Lipitor

Each product undergoes the product life cycle and eventually reaches its decline. Unfortunately, pharmaceutical patents only last 20 years after which generics can saturate the market with lower-cost alternatives (Herper, 2002). Pfizer’s Lipitor patent expired in November 2011 and atorvastatin generics by international manufacturers and US manufacturers have flooded the market. According to Anderson (2016), generic atorvastatin can save consumers hundreds of dollars each month. To improve future prospects of Lipitor, Pfizer will have to adjust their pricing, promotion, and distribution marketing strategies to compete in the crowded statin market.

Lipitor generated over $125 billion dollars in sales for Pfizer during its 20-year patent but after its patent expiry sales dropped by 71% by third quarter 2012 (Anderson, 2016; Harrison, 2013). Lipitor’s generic competitors offer 10 mg atorvastatin for as low as $22 for a 30-day supply for cash paying customers (without an insurance plan) and compared to Lipitor’s out-of-pocket cost of $138 it is an extreme bargain (Atorvastatin Prices, Coupons & Patient Assistance Programs, n.d.; Lipitor Prices, Coupons & Patient Assistance Programs, n.d.). In 2011, after the expiry of their Lipitor patent, Pfizer began offering a Pfizer Choice Card, a copay card that may bring patient’s monthly prescription total to as low as $4 ($30 with some insurance plans or no coverage) (Flows, 2011; The LIPITOR® (atorvastatin calcium) Choice Card, 2006 - 2016).

Pfizer’s promotional marketing strategy should emphasize their value through utilizing the Lipitor Choice Card, overall product quality, and should promote brand loyalty. By emphasizing their value and quality they will maintain market share and possibly recapture patients highly susceptible to brand-switching. The Lipitor Choice Card levels the pricing difference between the brand name and generic, making the two almost indistinguishable to the consumer. Although Pfizer and US manufacturers of generic atorvastatin adhere to the FDA regulatory standards, foreign manufacturers do not. In 2012, Ranbaxy, an India-based generic pharmaceutical manufacturer, issued a recall for glass particles found in prescription bottles and as recent as 2014 Ranbaxy recalled 64,000 because of mixed dosage pills in bottles labeled 10 mg for distribution (Anderson, 2016). Pfizer is a trusted company with a trusted brand name product for more than 20 years and should position them as a trusted source; a brand patient’s can count on.

Lastly, Pfizer should investigate a different distribution strategy such as a complementary channel to distribute a Lipitor as a generic under a different name to pharmacists. Through their private license holder, Pfizer can indirectly promote to this new channel rather than directly to doctors. This strategy is typically used for consumer goods, but this has two advantages in the realm of pharmaceuticals: Customers already see generics as trust worthy and Pfizer can still generate profits from the sale of a generic atorvastatin.

Conclusion

Lipitor is the best selling drug in the history of pharmaceuticals and there is no wonder why after analyzing the market savvy of the Pfizer-Warner-Lambert co-marketing team. Despite Lipitor’s lucky discovery by Roth at Warner-Lambert, the PWL co-marketing effort had perfect market entry timing, effective product and market positioning, and cost differentiation that led to its overall success. This seamless combination of market opportunity for statins, marketing strengths within Pfizer, and excellent promotional strategies led Lipitor to become the market goliath it is today.

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