Pfizer Inc. (NYSE:PFE) has witnessed a drop in its share prices over the last one month. Much can be attributed towards the increasing number of lawsuits from its customer concerned about the side effects of Lipitor. The drug has faced imminent resistance right from the time when Food and Drug Administration (FDA) announced its linkage with memory loss and elevated chances of developing diabetes. Pfizer Inc. (NYSE:PFE) included statement of risk in its label following this warning from the FDA.
Lipitor, the anti-cholesterol drug, has lead to over 1,000 lawsuits filed by female patients who complained that the Pfizer Inc. (NYSE:PFE) was aware of the side effects of the drug. Lipitor is one of the best performing drugs offered by the company achieving over $130 billion from global sales and more than 29 million patients have received prescriptions since 1996. In fiscal 2013, Lipitor brought in $2.3 billion for the company, which equals 4.5% of its revenue.
Against the current lawsuits, Pfizer Inc. (NYSE:PFE) claims its innocence with facts such as the primary reason for diabetes type-2 in female patients was an existing set of medical conditions including obesity or high blood pressure. In addition to it, the company has not allocated any additional reserve for lawsuits in its current quarter financials.
Lawsuits are not the only point of worry for Pfizer Inc. (NYSE:PFE). Carlos Sanchez has flooded the pharmacies in Brazil with the generic version of Viagra following the expiration of Pfizer’s patent over the medicine. Brazil is one of the biggest markets for erectile dysfunction drugs and its demand for these drugs has quintupled within four years. Generic Viagra replacement pill is available for $4.39 (10 Reais) and it is cheaper than Viagra by at least 5 Reais. With an extensive growth in the generic drug industry, Pfizer might have to face rigorous competition in the next few years.
Ken Fisher’s Fisher Asset Management had $971 million invested in Pfizer inc. (PFE) at the end of the first quarter. Click here to see other hedge fund managers which have investments in the company.
This article has been written by Prakash Pandey and edited by Serkan Unal.
