Through
successful litigation, Pfizer
(PFE-$28.16) has extended the patent for its sex drug Viagra (sildenafil)
in the U.S. until October 2019. However, up to twenty generic manufacturers,
including powerhouse Teva (TVA), are
poised to market their own versions of the little blue pill in Europe and other
global markets after international patents expired in June.
Worldwide
sales totaled $945 million in 1H:2013 (4% of product sales), with half of this
revenue coming from abroad.
Concerns
have been expressed, too, by analysts that the drug could lose incremental
sales here at home to a generic version of Pfizer’s proprietary treatment for
pulmonary arterial hypertension, Revatio, which contains sildenafil as the
active ingredient and lost marketing exclusivity in November 2012.
Albeit
Pfizer is looking to mitigate the impact of generic competition by bringing to
market new products, including treatments for auto-immune disorders,
cardiology, and oncology, as demonstrated by Viagra, its portfolio of drugs
at-risk of losing market exclusivity is high. Up to 35% of the $23.6 billion in
sales derived from branded pharmaceuticals in 1H:13 is either currently
battling an onslaught of cheaper alternatives or will soon face generic
competition, including several best-selling drugs.
Read more at YCharts: Dark
Patent Issues Behind Pfizer's Cash Machine
Editor David J Phillips does not hold a
financial interest in any stocks mentioned in this article. The 10Q Detective
has a Full Disclosure Policy.
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