VIAGRA: Still Creating Quite A Stir
"[G]angbuster sales" of Viagra have helped drive Pfizer Inc. earnings up 37%. The Wall Street Journal reports that Pfizer posted second-quarter earnings of $628 million, up from $457 million a year ago. "Pfizer just blew us out of the water," said Gruntal & Co. analyst David Saks. And with sales of $409 million in its first quarter on the market, the Journal reports the anti-impotence pill is the main reason for Pfizer's success. And Viagra's effect may be long-lasting for Pfizer. While U.S. prescriptions have started to "level off," analysts noted "that the drug has yet to be officially launched internationally" (Tanouye, 7/10). The Financial Times reports that IMS Health says Viagra has "exceeded all previous records for new drug prescriptions," already controlling about 98% of the erectile dysfunction market. While it may be "too early to make long-range projections about sustainable Viagra prescriptions levels, the initial response has been truly extraordinary," said Pfizer Chair and CEO William Steer (Corrigan, 7/10).
Foreign Markets
Although Viagra has not been "officially" introduced in India, the Wall Street Journal reports that it is already generating a "thriving black market." Sales are "strictly under the counter," and one pill is selling for $13, "a fortune by Indian standards." Dr. Shaukat Sadikot, a Bombay physician who sat on Pfizer's global advisory committee on Viagra, said, "People have paid pharmacies advance deposits of 5,000 to 10,000 rupees ($118 to $235) to ensure they get Viagra when it arrives." And at least three, and possibly five more, Indian drugmakers "have confirmed they are making sildenafil citrate, Viagra's active ingredient," causing Pfizer fury for what it considers "violation of intellectual-property rights." One Indian company, Cipla Ltd., is already exporting its Viagra imposter, which it is considering calling Tarzia or Activ.
Within Reason
As states react to President Clinton's decree that all state Medicaid programs should cover Viagra, the Las Vegas Sun reports that "Nevada is moving forward in allowing Medicaid to pay for Viagra." However, the state will "probably place restrictions" on the prescriptions, such as dosage limits, prescription duration limits and prior authorization requirements, according to state Human Resources Director Charlotte Crawford. "The state's position is it's federal law, and we're going to comply," said Gov. Bob Miller's (D) spokesperson Gordon Absher (Ryan, 7/9).
Get Off Our Backs
The Columbia State disagrees, saying that South Carolina should join New York and Wisconsin and "say no to federal orders to provide taxpayer-subsidized Viagra." "Better still, the Clinton administration should back off its ill-conceived mandate," it says. States pay a significant portion of Medicaid costs -- South Carolina pays 30% of the joint program -- so the federal government does not have a "clear cut" right to mandate coverage. And because the federal government does not routinely cover fertility treatment, it "makes it difficult to conclude that its interest in Viagra could be tied to anything other than taxpayer-sponsored" recreational sex, the editorial concludes (7/9).
Let Down
In California, a 77-year-old man is suing Kaiser Permanente for refusing to cover Viagra. In a statement yesterday, Louis Marcil said: "After half a century of marriage, I'm still in love with my bride (and) we've enjoyed a long, intimate relationship. ... I've had good service from Kaiser up to now, but I feel let down and disappointed that Kaiser won't pay for Viagra" (Reuters/Nando Times, 7/10).