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  • Pfizer And Warner Lambert Partnership For Lipitor Was Not MESSY!!! Open Letter To Joe Zakrzewski,CEO,Amarin 1 comment
    Aug 28, 2012 10:19 AM | about stocks: AMRN, PFE, AZN, GSK, MRK

    Recently Amarin's CEO Joseph Zakrzewski in his recent discussion with security analysts on July 26th after FDA approval for Vascepa said that "partnerships can be messy" .He was outlining the next steps for launching Vascepa in Jan.2013.

    My experience and experiences of others show that partnerships are often the best option for pursuing better relationships.It is like courtship before marriage.

    Let me give you the example of Lipitor.Based on a great article by John Simmons of Fortune magazine in Jan.20th,2003,"The $ 10 Billion Pill,Hold the fries,please,Lipitor--",Warner Lambert uncovered that they had Turbo Statin in their hands.Their previous research gave them incorrect data which was refuted by another "Mother-in Law" type research cited by John Simons. Even Merck (NYSE:MRK) pooh poohed Lipitor in their internal documents in 1996-97.

    So Warner Lambert approached Pfizer(NYSE:PFE) for marketing help.Pfizer's market research was very positive and they decided to market Lipitor in 1997.But when results came in a few months in 1998,even Pfizer was shocked and surprised.Lipitor had captured 18% of Statin market in a hurry.

    So in 1999,Pfizer approached Warner Lambert for acquisition.Bidding war started fueled by Merck and others.Ultimately Pfizer paid 90 billion$ for Warner Lambert in 1999 a huge sum.But Pfizer 's estimate of Sales were realized as Lipitor became a 10 billion$/year drug.

    Another example that resulted from partnership was Quest Diagnostic(originally Metpath).Corning Inc.acquired partial interest in Metpath in early 80's with the foresight of Marty Gibson who was a top executive at Corning Inc. The relationship grew with a few bumps,but courtship continued.Eventualy Corning Inc. took over Metpath as it was growing too fast-bringing in the Growth pains of needing more capial infusion. In 1996,this business was divested and Quest Diagnostic was formed.Under the leadership of Marty Gibson and Ken Freeman,it grew more but had problems,which were resolved in 1999-2000 and Quest Diagnostic stock took off like a rocket.

    So my advice to Joe Zakrzewski is that he should seek Business Partnership to Turbo Blitz Launch VASCEPA as soon as possible.Try Pfizer(PFE),Astra Zeneca(NYSE:AZN),Merck(MRK) as marketing partners.

    As a COO of Valeant Pharm.which was sold to Glaxo(NYSE:GSK) in 2007,you got 1.65 billion$ for US rights to sell Lovaza after Lovaza had some sales data.

    Amarin will get higher offer after these partners see sales data for VASCEPA for 2 years.

    Remember your discussions in May,2011--you were not happy with offer price.

    Disclosure: I am long AMRN.

    Additional disclosure: I own shares in Amarin.

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  • Jeremy's friend
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    Author’s reply » Joe Zakrzewski,CEO,Amarin;
    You said at last conference call--"Partnerships are Messy".
    The facts are big relationships started with Partnerships like for LIPITOR in 1996-97.
    See : http://cnnmon.ie/SIoQAU
    As a matter of fact: Partnership can lead to BIG LAUNCH with higher sales for Vascepa in 2013-2014 and fetch higher price for Amarin in 2015.
    Pfizer or Astra Zeneca may haggle for price per share now,but with 2 years data,they will know the true worth of Vascepa.
    Your discussions in April/May,2011 is a good experience.
    SO PLEASE EXPLORE PARTNERSHIP.
    27 Aug 2012, 09:36 AM Reply Like
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