Exubera Fiasco: What Went Wrong?

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Pfizer's Exubera Strategy Questioned Contd...

Exubera was launched in May 2006 in some European countries and in September 2006 in the US. At that time, it was hailed as a major advancement in the treatment of diabetes mellitus9 (diabetes) since the introduction of injectable insulin in 1921. Some medical experts predicted that it would revolutionize diabetes care. Exubera was also the first inhaled insulin to be approved by the US Food and Drug Administration10 (FDA) for use with both type 1 and type 2 diabetes. The drug also received marketing approval in Europe. The withdrawal of Exubera came as a major blow for Pfizer which was already under heavy pressure to introduce a new blockbuster drug11 in view of the impending expiry of the patent of its blockbuster cholesterol lowering drug Lipitor.12

Pfizer initially expected that Exubera's annual sales would reach US$ 2 billion by 2010, which would make up for some of the revenue loss resulting from the patent expiry. Exubera was also expected to revive Pfizer's stagnating sales. Pfizer had projected Exubera as a potential blockbuster like Lipitor, which was the world's highest-selling drug with sales of US$ 12.7 billion in 2007.

Also, unlike injectable insulin, the drug could not be administered discreetly due to the bulky size of the inhaler used for it. There were also concerns that the drug would decrease the functioning of the patient's lungs because of the way it was administered. The multi-million dollar advertising campaign in the US which Pfizer had started in the latter half of 2007, too failed to boost the sales of the new drug...

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9] Diabetes mellitus is a syndrome characterized by a disordered metabolism and high blood sugar levels called hyperglycaemia which results from low levels of the hormone insulin in the body. There are two commonly found types of diabetes. In the Type 1 diabetes, the body is not capable of producing insulin. In Type 2 diabetes, the body is not capable of producing or using insulin well.
10] Food and Drug Administration of the US is the government agency responsible for regulating food (human and animal), dietary supplements, drugs (human and animal), cosmetics, medical devices (human and animal), biologics, and blood products in the US. It approves drugs for certain indications and provides guidelines for use of the drugs.
11] A blockbuster drug is one which has annual sales of more than US$1 billion.
12] Lipitor was the brand name of the drug Atorvastatin. It is a member of a drug class known as statins used for lowering cholesterol. The patents of the drug will start expiring from 2010.
13] Divya Pamnani, "Trends in Diabetes Research," www.expresshealthcare.in, August 2008.
14] Arlene Weintraub, "Pfizer's Exubera Flop," www.businessweek.com, October 18, 2007.

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