Demand For Pfizer's Viagra Drug Tapers Off In Recent Weeks
July 21, 1998 8:22 PM
NEW YORK -(Dow Jones)- The spectacular sales of
Pfizer Inc.'s impotency-treatment drug Viagra have
tapered off in recent weeks.
In part, the sales rush has slowed because some insurers
won't pay for the drug, the Associated Press reported.
In addition, patients who once raced to doctors' offices
for prescriptions now find they use the pills only
occasionally.
"Many people are having less sex than they had
anticipated," said Dr. J. Francois Eid, director of the
New York Presbyterian Impotency Center.
"The euphoria is probably gone," said Steve Lisi, an
analyst with Mehta Partners, a New York investment
firm.
In the week ended July 10, pharmacists filled 184,312
prescriptions for the little blue pill, compared to a peak
of 303,424 in the week ended May 8, according to
industry researcher IMS Health.
That still makes Viagra one of the nation's hottest selling
drugs, on track to reach $1 billion in sales in its first
year. But drug-industry analysts and doctors alike say
the frenzy that followed Viagra's April 10 debut has
calmed considerably.
Viagra's first few months on the market haven't been
trouble-free. More than 30 people who used Viagra
have died, prompting insurers Prudential HealthCare and
Humana Inc. to refuse to pay for the drug.
Pfizer and the Food and Drug Administration point out
that users of the drug are often elderly and have other
health problems. Both have maintained that there's no
evidence any of the patients would have died if they
took the drug as directed.
Independent analyst Hemant K. Shah believes the spotty
reimbursement is responsible for Viagra's slumping sales.
Indeed, erectile dysfunction remedies Muse and
Caverject, which are more frequently covered by
insurance policies, have recovered some of the market
share they lost when Viagra debuted.
But others attributed the slowdown to the normal forces
of supply and demand. "This is something we observe
with every product used to treat erectile dysfunction,"
said Dr. Eid. "There's always an initial, pent-up need for
a new product, and everybody wants to try it."
Plenty of people who bought Viagra in its first few
weeks on the market may be making their first
prescription of eight to 10 pills last, observers said. Lisi
and Eid agreed that Viagra users, who may have gone
for years without sexual intercourse, often end up using
the pill less frequently than they once imagined they
would.
Pfizer reaped big profits from the drug in its recently
ended second quarter. A spokeswoman Tuesday
deemed the drop in sales insignificant, and wouldn't
comment on the figures.
Myron Holubiak, general manager of the Plymouth
Group, the consulting arm of IMS Health, agreed. He
said the best indicator of Viagra's future potential is the
refill rate, which has climbed steadily until a slight drop in
the latest week's report.
"As long as people keep refilling their prescriptions,
Viagra probably will reach $1 billion," he said. "In two
months, we'll know a lot more."
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