Ranbaxy, FDA consent decree hits Daiichi

AnaMariaVR2

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End-November, Ranbaxy got approval to sell the generic version of Pfizer’s Lipitor (cholesterol-lowering drug) . Ranbaxy is only 1 of 3 sellers of this drug for 6 months & is expected to reap a windfall. Pfizer had earned $7.9 billion from this drug in the 12 months which ended September. But the size of its proposed US government settlement may mean that much of this profit may find its way back to the US regulatory authorities.

Ranbaxy’s generic Lipitor launch came with three surprises (back in November):
  1. an unusually spirited defence by Pfizer of Lipitor’s market, which could limit, to some extent, Ranbaxy’s gains from its own generic drug.
  2. Ranbaxy said it would be sharing profits from generic Lipitor’s sales with Teva Pharmaceutical Industries.
  3. There is no news of the settlement with US FDA and DoJ.

In December formalities are announced with a final settlement. While this is not the end for Ranbaxy, it is some relief and a chance to focus on the business side while the actual penalty is taken care of & hoping that there are no unwelcome surprises during that journey.

 
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