Rivals Pfizer, Lilly In Sync with Price Increases

Manufacturers of Viagra and Cialis are just two companies that tend to raise prices at the same rate
Nov. 29, 2016

Pfizer Inc. raised the list price of Viagra by 13 percent in June. A few days later, Eli Lilly & Co. increased the price of its competing drug Cialis by the same amount, according to a Wall Street Journal article.

The two competitor companies followed a common industry practice: raising prices in tandem. Pfizer and Lilly have repeatedly increased their erectile-dysfunction drugs within days/weeks of each other, keeping similar list prices of each pill.

The article highlights a problem in the drug industry: Even when there is competition, prices can continue to climb. "That is because patients tend to stick with a drug that works for them, and health insurers and drug-benefit managers sometimes have contracts for drugs that prevent switching to cheaper options," the article says.

A six-pill prescription of Viagra or Cialis lists for about $300, which is more than double what it was five years ago, according to wholesale acquisition-cost data supplied byConnecture.

Read the WSJ article

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