Viagra new Rx leap to 207,868 in week 3 - analyst [more detailed report]
Monday May 4, 1:04 pm Eastern Time
NEW YORK, May 4 (Reuters) - New U.S. prescriptions for Pfizer Inc. (PFE - news) impotence drug Viagra leaped to 207,868 in the week ending April 24, its third week on the market -- eclipsing its stellar performance during prior weeks, PaineWebber analyst Jeff Chaffkin told Reuters.
Chaffkin said data obtained by him from auditing firm IMS America showed sales of Viagra continued to grow apace, easily outstripping the 113,134 new prescriptions written for the first impotence pill during the prior week ending April 17.
''It's just a tremendous number,'' Chaffkin said of the third-week results.
''New prescriptions have been going up almost in a straight line but we don't think that will continue,'' Chaffkin said, predicting they will plateau at some unforeseen date and then remain very robust amid strong demand for the drug.
''The big issue is what is the sustainable level, the sustainable number'' of new weekly prescriptions, said Chaffkin, who meanwhile continued to forecast 1998 sales of $600 million and 1999 sales of $1.2 billion.
Mehta Partners analyst Steve Lisi said third-week sales were ''phenomenal. When sales will start to calm down nobody knows. Right now any projections are just speculation.''
Lisi said if Viagra's current sales pace were to remain constant for the whole year, revenues during its first 12 months on the market would reach $800 million.
He added an average prescription has ll pills, with each pill wholesaling for about $7 and retailing for about $10.
Pfizer shares edged up 1-1/4 to 113-15/16 near midday, in step with gains by other large U.S. drug companies amid a broad rally on Wall Street.
The Wall Street Journal said Monday that Pfizer had signed a deal with R.P. Scherer Corp. (SHR - news) to develop a faster-acting thin wafer form of Viagra using Scherer's Zydis drug delivery system. Scherer was up 5-13/16 to 79-3/8.
Viagra must be taken about an hour before sexual activity, whereas it is hoped a thin-wafer version might work within minutes, the Journal said.
Pfizer said it was doing preclinical research on the Scherer technology and that development of a new version of Viagra would take years.
Chaffkin said a faster-acting version of Viagra, if eventually approved by the U.S. Food and Drug Administration, would not necessarily give a big boost to sales.
''A faster version would help maintain sales, or slightly increase usage of the drug,'' Chaffkin speculated.
Lisi said he doubted Pfizer was in a rush to market a faster-acting form because sales of the original version would likely prove impressive during the five years it would take to bring an improved Viagra to market.
And because a new form of the drug would extend the patent life of Viagra, he said Pfizer benefit by delaying introduction of a new version.
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