Letter from the Editor

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The way forward… Nov. 30, 2011 — a day that will live in healthcare infamy. This is the date that Lipitor, the most successful drug ever (average global sales of $12 billion a year over the past 15 years), began to face generic competition. Almost immediately, my email inbox and Tweet deck began to light up as “news” about generic Lipitor, aka atorvastatin, flooded forth. Analysts, including our friends at Booz & Company, have been talking about Lipitor’s loss of patent protection for years; it’s as if we have been living with a countdown to a reverse launch … 1,095, 730 days, 365 days, and so on. As Booz analysts note, Lipitor’s loss of patent ­exclusivity is a sharp reminder of the patent expiration wave making its way through the industry, which is just one of the factors increasing pressure to cut costs at a time when growth in the overall industry is slowing and demand is shifting to emerging markets. Booz expects these trends to continue in 2012, along with persistent regulatory ­hurdles; increasingly demanding stakeholders, including payers, providers, pharmacies, and others; and challenges throughout the value chain — from slumping R&D ­productivity to supply shortages. I encourage you to visit our digital edition to read Forecasting Pharma’s Future, to hear more from our experts. Some of Pfizer’s strategies to hold on to a small part of Lipitor’s revenue stream are quite novel and could trend out as other companies facing patent expiration look to retain their share of the generic pie. Pfizer’s ability to work with three large pharmaceutical benefits management companies (PBMs) to restrict payment on the generic in favor of the brand name Lipitor has many in the industry raising their eyebrows. Nevertheless, this move will allow Pfizer to retain more share than previously predicted. According to industry sources, Pfizer is also offering insured patients a discount card to get Lipitor for $4 a month compared with the $25 average copayment for a preferred brand-name drug and the $10 average copay for a generic drug. Pfizer is promoting this effort heavily through ads, information distributed at doctors’ offices, and its lipitorforyou.com site. Tune into the February issue of Pharma­VOICE, as our editors look at the topic of “The New Generics.” Even as the state of the industry remains in flux, which I suppose has become the new constant, forward-thinking companies continue to strive to overcome the generic cliff and are entering into more and more nontraditional partnerships to innovate, provide better outcomes, and engage and inform their various stakeholders. As the concept of Pharma 3.0 becomes more entrenched, Ernst & Young analysts state that this model is critical not only to sustain success in tomorrow’s outcomes-focused ecosystem but also to increase market penetration and performance in today’s challenging business environment. They say the opportunities that companies can seize by building success in Pharma 3.0 — solutions that extend drug life, increase patient adherence, create more effective sales and marketing, and much more — are increasingly relevant for success in Pharma 2.0 as well. To read more from E&Y’s Carolyn Buck Luce on the topic, please turn to this month’s Forum —Pharma 3.0 Next Steps — and to our digital edition to learn more about some of the innovative Pharma 3.0 partnerships that are in the works. It will be interesting to see how Pfizer’s strategy as well as the Pharma 3.0 model plays out in 2012. Publisher Lisa Banket Editor Taren Grom Creative Director Marah Walsh Managing EDitor Denise Myshko Senior EDitor Robin Robinson features EDitor Kim Ribbink Contributing Editor Carolyn Gretton design associate Ariel Medel national account managerS Trish Kane Cathy Tracy WEBCAST?NETWORK?PRODUCER Daniel Limbach CIRCULATION Assistant Kathy Deiuliis Copyright 2011 by PharmaLinx LLC, Titusville, NJ Printed in the U.S.A. Volume Eleven, Number One PharmaVoice (ISSN: 1932961X) is published monthly except joint issues in July/Aug. and Nov./Dec., by ­Pharma­­Linx LLC, P.O.?Box 327, Titusville, NJ 08560. ­Periodicals postage paid at Titusville, NJ 08560 and additional mailing offices. Postmaster: Send address changes to PharmaVoice, P.O. Box 292345, Kettering, OH 45429-0345. PharmaVoice Coverage and Distribution: Domestic subscriptions are available at $190 for one year (10 issues). Foreign subscriptions: 10 issues US$360. Contact PharmaVoice at P.O.?Box 327, Titusville, NJ 08560. Call us at 609.730.0196 or FAX your order to 609.730.0197. Contributions: PharmaVoice is not responsible for unsolicited contributions of any type. Unless otherwise agreed in writing, PharmaVoice retains all rights on material published in PharmaVoice for a period of six months after publication and reprint rights after that period expires. E-mail: tgrom@pharmavoice.com. Change of address: Please allow six weeks for a change of address. Send your new address along with your subscription label to PharmaVoice, P.O. Box 292345, Kettering, OH 45429-0345. Call us at 800.607.4410 or FAX your change to 937.890.0221. E-mail: mwalsh@pharmavoice.com. Important notice: The post office will not forward copies of this magazine. PharmaVoice is not responsible for replacing undelivered copies due to lack of or late notification of address change. Advertising in PharmaVoice: To advertise in Pharma­­Voice please contact our Advertising ­Department at P.O.?Box 327, Titusville, NJ 08560, or ­telephone us at 609.730.0196. E-mail: lbanket@pharmavoice.com. Volume 11 • Number 1 Denise Myshko Managing Editor Companies have made tremendous progress in providing pediatric ­dosing and safety ­information about their ­products. But more research is needed for off-patent products. Robin Robinson Senior Editor Strategic partnerships are emerging as the ­industry turns its focus toward patient services that create better health ­outcomes. Kim Ribbink Features Editor Global markets are ­increasing in ­importance as ­pharmaceutical ­companies look for new R&D and commercial opportunities. Carolyn Gretton Contributing Editor Pharma companies are starting to employ ­social media tactics as a way to connect with patients and providers in ­conversations that engage and inform. Their Word… Coming in February 2012 > Safety and Pharmacovigilance > Patient-Digital Communications > Generics > C-Suite: CROs > GlobaI Product Launches > Market Report: the U.K. > Showcase Feature — Outsourcing Send your letters to feedback@pharma­voice.com. Please include your name, title, company, and business phone number. Letters chosen for publication may be edited for length and clarity. All submissions become the property of PharmaLinx LLC. Letter from the Editor

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