'Patent'ly corrupt!

Pfizer, the world's biggest drug company by sales, has been facing patent expirations on a number of its drugs. Ranbaxy, the Indian drug firm that makes generic drugs, had been challenging Pfizer's patents for Lipitor. There was a good possibility that Ranbaxy would have succeeded, in which case generic Lipitor would have been available in the first half of 2010. Lipitor currently generates nearly $13 billion a year for Pfizer.

In order to extend the patent-protected Branded Rx life of Lipitor, Pfizer has entered into an agreement with Ranbaxy. The latter will delay the introduction of generic Lipitor until November 30, 2011, giving an additional year and a half of patent life for Lipitor. In return, Pfizer is also allowing Ranbaxy to sell generic version of another drug, Caduet, in the United States on the same date.

Ian Read, president of Worldwide Pharmaceutical Operations for Pfizer, had the audacity to say that “This agreement is a win-win-win because it is pro-patient, pro-competition and pro-intellectual property.”

This is a rather simple case of 'quid pro quo.' It is depressing that corporations can get away with such blatant corruption- this is a hard 'pill' to swallow....especially if it's Zoloft, Pfizer's anti-depression drug. After Zoloft went off-patent in June 2006, its sales declined by nearly 84%, from $3.3 Billion in 2005 to $531 million in 2007.