Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Pfizer Inc. (PFE), Eli Lilly And Co (LLY) Impotence Drugs Price Increases Leave Patients Disgruntled

Pfizer Inc. (NYSE:PFE) and Eli Lilly and Co (NYSE:LLY) are yet again the subject of immense criticism as their practice of increasing the prices of key drugs in the impotence drug market in tandem continues to leave patients with no other options. Over the last five years, prices for Viagra and Cialis have more than doubled.

Eli Lilly And Pfizer’s Defense

Pfizer’s Viagra retails for $48.28 a tablet while Eli Lily’s Cialis goes for $51.74 a tablet.

“I can’t afford to pay for a higher-dose Cialis, “ says Mr. Monterius Chapple, a 37-year-old county prison worker from Huntington, Tennessee who surprisingly did not request anonymity.

Amidst the firestorm from the public, the two drug makers insist that the two drugs are fairly priced given the costs incurred to produce them, even though from an economics perspective, costs of production have nothing to do with price, and only supply and demand determine price. In a bid to justify their pricing, Pfizer Inc. (NYSE:PFE) says that a good number of insured patients pay as little as $6 out of pocket as insurance companies cover the rest. Patients pay insurance premiums, however, one way or another.

Pfizer PFE pharmaceutical stock

pio3 /

Eli Lilly and Co (NYSE:LLY) in its defense says it might opt to overhaul health insurers from its payment system if the same would go a long way in ensuring much lower costs for Cialis.

Growing Demand For Generic Versions

The pumped up drug prices are already fueling demand for generic versions at a much lesser cost. For instance, patients who cannot afford Pfizer’s Viagra are increasingly turning to Revatio, which costs $1.01 a pill.

Rising prescription drug costs have also forced CVS Health Corp (NYSE:CVS) to start embracing cheaper copies of biotech medicines, given that they are the only ones that a majority of people can afford. The pharmaceutical giant has already started to drop coverage for higher priced medicines as copies of branded drugs continue to flood the market.

Pharmaceutical companies going for generic drugs at the expense of branded drugs should spell more trouble for the likes of Pfizer and Eli Lilly as consumers resort to affordable options in the market.

Follow Eli Lilly & Co (NYSE:LLY)
Trade (NYSE:LLY) Now!

Eli Lilly and Co (NYSE:LLY)’s stock was down by 2.78% in Monday’s trading session, closing the day at lows of $67.20 a share. Pfizer Inc. (NYSE:PFE) on the other hand was down by 0.47%, closing the day at $31.54 a share.

Follow Pfizer Inc (NYSE:PFE)
Trade (NYSE:PFE) Now!

Note: This article is written by Adam Russell and was originally published at Market Exclusive.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.