The jinxed journey of Ranbaxy Labs to launch the generic version of the blockbuster drug globally ? Lipitor ? continues, as weeks ahead of the scheduled US launch date, 11 pharmacies from California have slapped legal charges against the Indian drugmaker alleging it colluded with Pfizer to unethically fix prices of the ?yet to be launched? generic drug.
Terming the deal between Pfizer and Ranbaxy ?an extraordinary rip-off by the largest pharma company in the US and the largest generic manufacturer in India?, the pharmacies claim that the pact between the two drug firms include a clause in which the India-based drugmaker agrees to launch its generic version at a price point which is equal to or only slightly less than Pfizer?s drug price, during the period of six months generic exclusivity.
If these claims are true, it puts the consumers at a clear disadvantage, considering a generic launch in the US market usually erodes the price of a branded drug by over 40%, by breaking monopoly of the innovator drug firms. Ranbaxy officials refused to comment.
The complaint further asserts, ?By delaying Ranbaxy?s generic version of Lipitor in the US- which would have been lawfully sold as early as March 24, 2010 – Pfizer obtained extra time for the exclusive sales of Lipitor, totaling extra sales of Lipitor of approximately $18 billion.? It claims that Ranbaxy in return pocketed the rights to distribute a generic substitute for Lipitor earlier in geographies other than US.
According to the pharmacies? calculation, while Lipitor?s price exceeds $4 a day, a generic version should sell for $0.35 or lower. Consumers would be deprived of such low prices till the end of May 2012, the period till which Ranbaxy?s exclusivity period is expected to last.
The pharmacies are asking the US court to nullify this historical settlement between Pfizer and Ranbaxy on Lipitor. They are also seeking damages equal to the difference between what Lipitor sold for without the generic and the price it would have been with competition, had a generic entered the market in March 2010.
Ranbaxy?s endeavour to chase a generic launch of Lipitor has been marred with great troubles since 2008, when it entered into a pact with Pfizer, with which it had fought a bitter patent battle till then.
In late 2008, the FDA banned 30 generic drugs produced by Ranbaxy at two of its major Indian facilities at Dewas and Paonta Sahib on charges that the firm had furnished falsified data leading to concerns about the prospect of Lipitor launch.
In March 2011, another US generic giant, Mylan Pharma dragged Ranbaxy and the US drug regulator, seeking to terminate Indian drugmaker?s exclusive marketing rights to sell a low-cost version of the cholesterol drug.