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IMS HEALTH Forecasts Viagra Sales to Reach $1 Billion In First Year; Most Successful Product Launch Recorded
PLYMOUTH MEETING, Pa., July 6 /PRNewswire/ -- Completing its first three months in the U.S. market, Pfizer's male impotence drug, Viagra, continues to set new records. Total prescriptions dispensed for the three months were 2.9 million, with sales estimated at $259.5 million and forecasted to reach $1 billion by March 1999, according to IMS HEALTH. Also, demand for the product remains high despite lower than typical third-party coverage -- 40 percent
for Viagra versus 76 percent for all prescription drugs. IMS HEALTH is the world's leading provider of information solutions to the pharmaceutical and healthcare industries.
Product Launch a Record
''Sales for Viagra set a new record for any prescription drug launch at $182.2 million in the first two months,'' noted Myron Holubiak, general manager of The Plymouth Group, the consulting arm of IMS HEALTH. It was nearly double the sales of 1997's top five products combined for their respective first two months.
The leading drug launches of 1997 included Lipitor, Rezulin, Aricept, Viracept and Levaquin. The first two-months sales for these five products combined was $94 million. Lipitor, launched in January of 1997, held first place among this group and had sales of $12.4 million during its first two months. The number one 1997 product in sales for its first two months was Rezulin, at $28.1 million.
Third Party Coverage Lowest in Class
Third-party coverage for Viagra has been relatively low from the outset. During its initial weeks in the marketplace, 50 percent of all Viagra prescriptions dispensed were being paid entirely out-of-pocket with the other 50 percent receiving some level of third-party coverage. By the middle of Viagra's second month, the mix had shifted to 59 percent out-of-pocket and 41 percent third-party. For the U.S. pharmaceutical market overall, only 24 percent
of the total prescriptions dispensed are paid for entirely out-of- pocket. Seventy-six percent receive some level of third-party payment.
''We predicted from the outset, that Viagra would be successful regardless of third-party coverage,'' stated Holubiak. ''It is a quality of life product with immediate value to its users. Yet it seems that third-party pay organizations don't place as much value on sexuality as a part of health status as do their members or beneficiaries. However, because of the importance of sexual function to the health and well-being perceived by individuals, we
believe Viagra will continue to receive strong demand.''
Among all sexual function disorder products, prescriptions for Viagra also are receiving the lowest third-party coverage. Current figures for Viagra reveal that only 40 percent of the prescriptions dispensed are receiving third-party coverage, with the majority, 60 percent, being paid entirely out- of-pocket. These figures contrast sharply with the leading competing products, Muse and Caverject, as well as with oral contraceptives. The percentage of
the prescriptions dispensed for Muse and Caverject currently receiving third-party coverage are 78 percent and 68 percent respectively. For oral contraceptives, 56 percent of the 64.5 million prescriptions dispensed in 1997 had some level of third-party payment coverage, with 44 percent paid for entirely out-of-pocket.
Prescriber Profile Switched Early -- Primary Care Dominates
During its initial weeks on the market, 42 percent of the prescriptions dispensed for Viagra were written by urologists, with 34 percent by primary care physicians (including internists and endocrinologists). By the end of the first month, this mix shifted with 32 percent of the prescriptions being written by urologists and 48 percent by primary care physicians. For recent weeks, the mix has been 26 percent and 55 percent respectively. For Muse, it
is the opposite profile with 52 percent by written urologists and 35 percent by primary care physicians. The difference as compared to Caverject is even greater with 68 percent of its prescriptions written by urologists and 20 percent by primary care physicians.
''Viagra is a much more convenient dosage form than the other agents, allowing primary care physicians to become more involved in this type of therapy,'' Holubiak commented. ''The subject of sexual function appears to now have become a part of the general medical interview, and primary care physicians are recognizing that they must be ready to address it.''
Initial Patient Profile Consistent with Market Overall
Early figures, from the patient anonymous data studied, reveal that the age profile of Viagra users is comparable to the mix prior to Viagra's introduction. For its first two months, approximately 42 percent of the patients were 40 to 59 years old, the same as it was for the pre-Viagra market. Approximately three percent of the patients are 20 to 39 years old, 12.9 percent 60 to 64 years old, and 28.5 percent 65 to 74 years old.
Total Prescriptions Decrease; Refill Growth Continues
The total prescriptions dispensed for Viagra's third month in the U.S. market were estimated at 1.0 million as compared to 598,000 and 1.25 million for the first and second months respectively. The total number of prescriptions dispensed for the last two weeks of June held steady at 219,458 for the week ending June 19 and 217,625 for the week ending June 26. While the total number of prescriptions dispensed declined May to June, the number of refills
continues to grow.
For the week ending June 26, the total number of refill prescriptions for Viagra continued their uninterrupted increase reaching 75,748 for the week as compared to 67,689 for the prior week. The earlier Viagra refills were 63,323 and 64,781 for the week ending June 5 and June 12 respectively. The average number of pills per prescription has remained fairly steady at 8.5, which is below the more than 10 pills per prescription during Viagra's initial
weeks on the market (NOTE: Actual number of pills in a prescription is a whole number, as partial tablets are not dispensed).
''A key barometer to measure the market demand and acceptance of Viagra will be the refill rate of prescriptions,'' Holubiak remarked. ''It provides insight into how consumers like the results and how they are reacting to news about the product. The time it takes a consumer to decide to get a refill will have a major impact on the ultimate sales of Viagra.''
IMS HEALTH
IMS HEALTH is the world's leading provider of information solutions to the pharmaceutical and healthcare industries. With more than $1 billion in 1997 revenue, IMS HEALTH operates in over 90 countries. IMS HEALTH is the largest pharmaceutical manufacturer information partner, with over 40 years' experience in the industry. Key products and services integral to customer day-to-day operations include: market research for prescription and over-the-
counter pharmaceutical products; sales management information to optimize sales force productivity; technology enabled selling solutions for sales and marketing decision-making; technologies systems and information services that support managed care organizations.
Additional information and previous press releases are available at IMS HEALTH's Web site: imshealth.com.
SOURCE: IMS HEALTH |
