The price of Pfizer’s Viagra has doubledsince it was launched, according to a list of wholesale acquisition costs paid by pharmacies, obtained by BNET. In May 1999, a 100-count bottle of the blue diamonds cost $700. Today, that same bottle costs $1,457.61, a 108 percent increase, according to the list:I don't want my tax dollars touching even one milimeter of that overly engorged expense.(Click to enlarge.)
The blog of online pharmacy AccessRx notes that Pfizer has also been extracting more frequent price rises in addition to higher price rises:
… we’re not sure if you’ve been tracking price increases recently, but Pfizer began to raise the cost of Viagra twice a year instead of once a year in 2007. Including the last six price increases since Jan. 1, 2007, the price of Viagra has gone up 45.5%.
The WAC list indicates that while Pfizer was initially content to take price increases of 3 percent per year, in 2003 it doubled that increase. In January 2009, Pfizer bumped it up to 11 percent. Then in August it took another 5 percent.
It’s an astonishing example of pricing power, given that Viagra is in direct competition with Eli Lilly’s Cialis and Bayer’s Levitra. The heat from Cialis is particularly severe: Cialis sales in the U.S. were up 16 percent to $149.4 million in Q2; Pfizer’s Viagra was up only 4 percent at $207 million.