Ranbaxy's Patent Litigations in the United States
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Case Code: ECON015 Case Length: 14 Pages Period: 1993-2005 Pub Date: 2006 Teaching Note: Not Available |
Price: Rs.300 Organization : Ranbaxy Laboratories Limited Industry : Pharmaceutical Countries : USA Themes: Corporate Social Responsibility |
Abstract Case Intro 1 Case Intro 2 Excerpts
Excerpts
The US Pharmaceutical Industry
The US was the largest pharmaceutical market in the world. In 2004, it alone accounted for $248 billion out of total global sales of $550 billion. The US pharmaceutical market was driven by research-based companies such as Pfizer, GlaxoSmithKline, Sanofi-Aventis, Johnson & Johnson, Merck, AstraZeneca, Novartis, Bristol-Myers Squibb, Wyeth and Abbott Labs. Together, these top ten global pharmaceutical giants grossed $235 billion in global sales in 2004 (Refer Exhibit IV and V for global sales and US sales respectively of the top ten pharmaceutical companies in 2004)...
Product Launches and Patent Litigations
Between 1995 and 1996, Ranbaxy filed two ANDAs. In the subsequent two years, the number of applications increased to four and then to 14 per year. Ranbaxy realized that to gain a substantial share of the US generics market, it was necessary to pursue aggressively 'first-to-file' Para IV ANDAs. It increased its ANDA filings and rapidly expanded it product portfolio, especially of antibiotics, in the US...
Outlook
The large pharmaceuticals companies were keen to protect their patents with all their might. In 2005, a drug like Lipitor earned nearly $36 million a day for Pfizer (Refer Exhibit VI for the sales of top ten drugs in the US in 2004). There were many other drugs that earned anywhere between $3 and $5 million a day for their companies. With such high stakes, it had become very important for patent-holding companies to fight the generic challenges...
Exhibits
Exhibit I: Financial Highlights of Ranbaxy
Exhibit II: The Indian Patent Act of 1970 and the Drug Price Control Order
Exhibit III: Top Ten Pharmaceutical Companies in India in 2004
Exhibit IV: Global Sales and R&D Investment of Top Ten Pharmaceutical Companies in 2004
Exhibit V: Top Ten Pharmaceutical Companies by U.S. Sales in 2004
Exhibit VI: Top Ten Drugs by U.S. Sales in 2004
Exhibit Vii: Big Pharma's Response to the Challenge of Generics
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