Pfizer, the world’s largest drug maker, has acquired rights to 55 generic pills and 20 injectables for more than 70 emerging and developed markets through new deals.Pfizer Inc, has entered into a licensing pact with Indian generic injectables producer Claris Lifesciences besides expanding it present alliance with Aurobindo.
Pfizer’s pacts with the Indian generic companies are seen as part of its strategy to invest more heavily in generics and developing countries amid pressures slowing growth in leading markets and US healthcare reform.
Pfizer has expanded the existing collaboration with the Hyderabad, South India-based Aurobindo Pharma Ltd reached earlier this year to sell 60 off-patent drugs. Meanwhile Pfizer’s agreement with Claris Lifesciences Ltd is to market 15 off-patent injectable drugs.
Pfizer has prioritized making licensing deals to expand its injectables business, in which it believes there are relatively few rivals and maintains it has a competitive cost structure.
The company has not revelead the financial terms of the deals.
The deals with Aurobindo and Claris could substantially increase Pfizer’s basket of generic medicines that have lost patent protection in markets around the world.
Under the terms of the agreement, Pfizer has acquired rights to 55 solid oral dose products and 20 sterile injectable products for patients in more than 70 emerging market countries in Latin America, Eastern Europe, Asia, Africa and the Middle East.
These medicines include antibiotics and anti-infectives, and cover a broad range of disease areas like cardiovascular and central nervous system disorders. Pfizer will commercialize the 60 products in phases tailoring its approach for different regions.
To date, 128 non-Pfizer products – 98 solid oral dose and 30 sterile injectables – have been added to the company’s existing diversified portfolio of established brands.
“The off-patent marketplace worldwide too often suffers from quality and supply reliability issues. With our broad established medicines portfolio and our world-class manufacturing capabilities, Pfizer is in an ideal position to supply high-quality medicines at affordable prices to people around the world,” said Jeff Kindler, chairman and CEO of Pfizer.
In the developed world, Pfizer is seeking to add $1 billion by 2012 for its established products unit, which includes its off-patent medicines. The deals are expected to add products that will contribute to more than half of that revenue goal.
Pfizer will gain rights to 60 products to be sold in developing markets, where it is seeking to add $3 billion in annual sales by 2012.
The Claris agreements advance Pfizer’s Established Products strategy, which focuses on the commercialization of products where market exclusivity has been lost.
“These agreements advance our goals to expand our steriles portfolio and provide hospitals and patients with a wide offering of affordable medicines they can trust. Pfizer’s reputation for high quality and supply reliability is unrivaled in the industry, and this is critical in the area of sterile injectables,” said David Simmons, president and general manager of Pfizer’s Established Products Business Unit.
Pfizer, which posted $48 billion in revenue in 2009, faces severe sales declines in the coming years from patent expirations to its own products, including its blockbuster Lipitor cholesterol treatment. In future, Pfizer may shift its reliance less on one or two blockbuster drugs like its cholesterol fighter Lipitor, which has roughly $12 billion in annual sales.
Pfizer struck a $68-billion deal, in January 2009, to acquire U.S. rival Wyeth to help shore up profits. It has also restructured its operating model around separate units — such as for established products, which includes its generic drugs, and emerging markets.
Pfizer’s Emerging Markets Business Unit was established in 2009 to focus on emerging markets around the world.
The unit is focused on three strategic priorities, striving to drive incremental organic growth, pursuing strategic acquisitions and partnerships, and seeking game-changing opportunities for innovation. Pfizer’s emerging markets spans more than 70 countries, across 20 time zones.
The business unit has identified six priority markets – China, India, Brazil, Russia, Turkey, and Mexico.
Pfizer’s Established Products Business Unit was created in 2008. Pfizer has more than 380 established products including many familiar brands such as Norvasc, Zoloft and Zithromax. Pfizer’s global annual sales of established products are approximately $10 billion.
Founded in 1849, Pfizer is the world’s premier biopharmaceutical company.
Headquartered at Hyderabad, India, Aurobindo Pharma Limited is the largest Active Pharmaceutical Ingredients (API) manufacturer under FDA approved facility.
Aurobindo is also one of the leading manufacturers of penicillin & cephalosporine products. The company’s manufacturing facilities are approved by several leading regulatory agencies like US FDA, UK MHRA, WHO, Health Canada, MCC South Africa, ANVISA Brazil.
Aurobindo is a leading manufacturer of generic pharmaceuticals in 6 major therapeutic/product areas encompassing Antibiotics, Anti-Retrovirals, CVS, CNS, Gastroenterologicals, and Anti-Allergics. Aurobindo is marketing these products in over 100 countries.
As on March 31, 2009, 95 abbreviated new drug applications (ANDAs) have been approved in the US including 27 tentative approvals. So far Aurobindo launched 48 products in the US market.
Based in Ahmedabad, Western India Claris Lifesciences is in the business of manufacturing and marketing of injectables with focus on New Drug Delivery Systems.
Claris’ range of products and delivery systems extends across Enteral and Parenteral Nutrition, Anaesthesia, Blood Products and Plasma Volume Expanders, Anti-infectives, Dialysis and Transplant, Oncology & Infusion Therapy.
Claris has manufacturing facilities approved by international regulatory authorities including USFDA, MHRA (UK), TGA (Australia), NAM (National Agency for Medicine) Finland, GCC (Gulf Co-operation Council), ANVISA (Agencia Nacional de Vigilancia Sanitaria) Brazil and INVIMA (Instituto Nacional de Vigilancia de Medicamentos Y Alimentos) Colombia.