Cholesterol drug market shifts

Mon, 12 May 2008 06:59:58 -0400

Big-name cholesterol meds are losing ground on two fronts. First, the Pfizer cholesterol drug Lipitor--its biggest seller--is falling victim to cost-cutting in the U.K. Primary Care Trusts are steering patients off the brand-name statin and onto simvastatin (generic Zocor). Lipitor scrips written by GPs dropped by 15 percent in 2007, or about $103 million. That's bad news for Pfizer--but also for other drugmakers, Pharmafocus notes, because it shows that the trusts are exercising their influence over prescribing habits.

Second, sales reps pushing Vytorin--the Merck/Schering-Plough combo pill that's attracted so much negative press lately--have been failing to get doctors' attention. Instead, Abbott's Simcor is turning heads. Twenty-three percent of primary care docs and cardiologists are listening to Simcor pitches, versus 20 percent for Vytorin. And despite the fact that Simcor was just launched, it's rapidly gaining ground on the popular Vytorin, nabbing one-third the number of scrips Vytorin did last month.

- see the Pharmafocus story
- check out the item at Pharmalot

ALSO: Back in 2003, when Abbott Laboratories raised the price of its Norvir AIDS drug, at least one company exec worried that the price hike might spur federal investigations, according to newly unsealed court documents. And of course, he was right. Report

Where Merck loses, Abbott gains

Wed, 30 Apr 2008 06:59:58 -0400

What's bad for Merck is good for Abbott Labs. When the FDA said "no" to Merck's niacin-based cholesterol treatment Cordaptive, it raised the prospects for Abbott's extended-release form of niacin, Niaspan, and its regular niacin drug Simcor. As long as Merck can't enter that market, Abbott has much more room to grow and solidify its market share.

Already Abbott's niacin meds had gotten a boost from problems at Merck: After the Enhance study results were presented at the American College of Cardiology meeting, the New England Journal of Medicine put niacin drugs higher on the cholesterol-treatment ladder than the Zocor-and-Zetia combo Vytorin.

Investors punished Merck, sinking its stock by 10 percent yesterday, and rewarded Abbott with a 3.6 percent boost to $53.48. Analysts scrambled to boost their sales outlooks for Niaspan and Simcor; some estimated that Cordaptive might now be delayed for two to three years. Given that sales estimates for the med were as high as $2 billion annually, that's a big blow. Analysts cut their stock-price targets accordingly--but reaffirmed their "buy" ratings, saying, just as Merck officials are, that the company is strong enough to weather the setback. But some said they're only recommending Merck to long-term investors.

- read the Houston Chronicle story
- see the item in the Wall Street Journal Health Blog
- check out the Associated Press coverage
- find an FAQ on the Cordaptive rejection at In the Pipeline