CNBC-TV18 shares with domain-b its exclusive interview with Malvinder Singh

18 June 2008

Is the settlement with Lipitor all done and wrapped up with Pfizer?
Yes, it is. This is a fantastic deal for the consumers in America, Ranbaxy and Pfizer. This is a global settlement that we have reached with Pfizer on Lipitor. This is the largest selling molecule in the world with revenues of USD 12.5 billion globally and over USD 8 billion in America.

We will launch Lipitor generic in the American market in November 2011, risk free with 180-day exclusivity. We will also be launching Caduet, which is Atorvastatin and Amlodipine in combination in the American market in November 2011. We will have 180-days on that.

In addition to this, we will also be launching Lipitor in Canada as an authorised generic for Pfizer. We will be launching this in multiple European markets and Asian markets, including Australia, where we will be launching this product two months in advance of the patent expiry in Europe and 3.5 months prior to patent expiry in Australia. So, it is a very substantial and extremely comprehensive settlement between Ranbaxy and Pfizer.

We would imagine it would have been done at a comprehensive price as well. Take us through that because there is all sorts of numbers doing the rounds and the buzz that one is picking up is that the deal has actually been done in excess of about USD 1.5 billion or at least in that ballpark. Can you share that information with us?
Well, Lipitor is the largest selling molecule in the world with revenues of over USD 12.5 billion. I am not in a position to give you specific financial details. But certainly this is the biggest ever settlement on any product done globally. It is not just for the American market, it is for markets around the world. So, we will be launching this product in Europe, taking it to Canada and we will be getting exclusivity in the US market in Asia and in other markets in the world, including Australia.

It is a very significant and substantial product. There will be huge amounts of revenue and benefits for Ranbaxy and it will also benefit consumers and customers around the world because they will get a generic alternative for certainty earlier than later.

Give us a sense of the payment structure. How is this actually going to accrue to Ranbaxy? Is it going to be an annual payment? How is this going to work out? Over what period of time and whatever the figure is, does it get accrued to Ranbaxy?
We will be getting revenues from the sale of the products in various markets depending on the launch dates, which differ from market-to-market. That is what is going to come into Ranbaxy. We will be getting no money from Pfizer. The money will come by us selling the product in the market and getting profits from that.