SPECIAL REPORT

Healthy Horizons
A brand new series of weekly segments which will explore the macro and micro issues facing the global economy.

LATEST FROM OUR BLOGS

» More

- Moon Hopes To Complete Amazing Story

MORE HEADLINES

» Markets | Economy | Companies

- European Commission Objects to Sun Micro-Oracle Deal

PHARMA'S MARKET VIDEO

» More

Making The Vaccine 06 Nov 2009
Inside the big push to get enough H1N1 vaccines, with CNBC's Mike Huckman.
Making the Flu Vaccine 06 Nov 2009
Wayne Pisano, CEO of Sanofi-Pasteur, discusses the making of the flu vaccine with CNBC's Mike Huckman.

Flu Fighting: On the Frontlines

06 Nov 2009

Flu vaccines were once a business that many drug companies avoided, but that segment of the pharma industry is now firmly in the spotlight. CNBC's Mike Huckman visits the only injectable flu vaccine plant in the US for a behind-the-scenes look.

Under the Flu Vaccine Veil

06 Nov 2009

J&J to Cut Up to 8,000 Jobs 03 Nov 2009
Johnson & Johnson says it will eliminate 6-7 percent of its workforce in a cost-cutting move. CNBC's Mike Huckman has the details.
J&J Announces Massive Restructuring 03 Nov 2009
Johnson & Johnson has announced a restructuring and that it will cut 6-7 percent of its global workforce. CNBC's Mike Huckman has the latest details.

RSS FEED

» Help

Subscribe to this RSS feed
Stay up to date with Pharma's Market.

CNBC ON DIGG

Pharma's Market

Text Size

Oct.23

10:22 AM ET

Thursday, 23 Oct 2008

Pfizer & Lilly Prove Me Wrong

Posted By:Mike Huckman

Topics:Medicine | Pharmaceuticals

Sectors:Insurance | Health Care Equipment and Services | Health Care | Pharmaceuticals

Pfizer's Viagra
AP
Pfizer's Viagra
Times may be tough, but apparently not tough enough--at least, not yet--for American men to sacrifice their virility.

A few months ago, during the last earnings season, I put forth an anecdotal theory (see links below) that the weak economy may be leading to flacid sales of the expensive pills for erectile dysfunction (ED). But this earnings season's results show that impotence drug sales may be more resilient than I thought.

Earlier this week Pfizer [PFE Loading... () ]reported that Viagra sales went up 13 percent from the third quarter of last year to the third quarter of this year. Not only that, but U.S. revenue from the little blue pill climbed sequentially (from the second quarter of this year to the third quarter) from $199 million to $236 million. That's not all new business, much of the increase probably comes from a price increase, but even that flies in the face of a report in "The New York Times" yesterday about people giving up or cutting back on their meds in this economy. Even though docs and the companies will tell you impotence could be a symptom of serious medical problems, ED drugs are considered so-called lifestyle, elective products. So, the fact that guys are paying even more for them these days may say something.

Then, this morning Eli Lilly [LLY Loading... () ]reported that U.S. revenue from Cialis jumped 20 percent quarter over quarter. And they rose $12 million sequentially. Here, too, on the conference call officials acknowledged most of that comes from a price hike and not so much from more demand. They also said Cialis' market share inched up 1.4 percent in the quarter in part due to the recent launch of a one-a-day version of the drug. And for those who think direct-to-consumer advertising doesn't work, LLY said since it started running commercials for one-a-day Cialis that its market share bumped up another .06 percent. Even sales of little Levitra co-owned by GlaxoSmithKline[GSK Loading... () ], Schering-Plough [SGP Loading... () ]and Bayer [BAY Loading... () ]crept up ever so slightly. Maybe it's all part of the whole cocooning, stay-at-home, go out less thing.