Senators question Pfizer and health care companies
about agreements to obstruct generic Lipitor

December 5, 2011--Three senators questioned drug maker Pfizer and five more health companies about their agreements to obstruct prescriptions of generic versions of Lipitor and sell only the brand-name version made by Pfizer.  Pfizer has decided to offer discounts to companies that will sell brand name Lipitor instead of generic prescriptions of the medication.  The senators stated, “We are concerned that arrangements like this will hinder access to generic drugs today and in the future.”

The letters from the senators were directed to Pfizer, UnitedHealthcare, Coventry Health Care, Express Scripts, Medco Health Solutions, and Catalyst Rx.  Senators Max Baucus, a Montana Democrat; Charles E. Grassley, an Iowa Republican; and Herb Kohl, the Wisconsin Democrat, said that their concern was about the long term impacts on employers, Medicare, and health care costs.

The senators were also concerned that pharmacy benefit managers might pocket the Pfizer discounts while charging employers and Medicare the full price for Lipitor.  The companies that signed onto the agreement with Pfizer said that they would pass the Pfizer discounts on to employers, consumers, and Medicare.

Senator Baucus, the chairman of the Finance Committee, said in a statement, “We need to take a close look to ensure we’re protecting both taxpayer dollars and access to the medicine patients need.” 

 Senator Kohl said in the statement, “Consumers and taxpayers foot the bill when drug benefit companies and insurers manipulate the marketplace to prevent access to generic drugs for millions of Americans.”

Lipitor is considered to be the best selling drug in history.  The unprecedented actions taken by Pfizer are intended to preserve market share while generic competition is limited and prices for the medication remain high.  The agreements were made as the patent for Lipitor expired.

Pfizer released a statement that said, “Our intent is to offer Lipitor to payers and patients at or below the cost of the generic during the 180-day period.”  MacKay Jimeson, a Pfizer spokesman, said in an e-mail that the senators’ concerns were based on incomplete or incorrect information and that “Participation in Pfizer’s programs by a health plan is entirely voluntary.”