Impotence Drugs Trigger a Marketing Battle

Viagra reported a 12% slide in worldwide sales during the three months ended March 31, which included a 25% drop in U.S. sales that Lipsky called "sobering." Lipsky said there is considerable room for growth "as men become less and less embarrassed about discussing erectile dysfunction. But it can't happen overnight. It won't happen in six months."

Revising Strategy

Pfizer has adjusted its marketing campaign, and more changes are planned. Last month, Pfizer began offering an incentive to long-time Viagra users. After filling six prescriptions, some men can get the seventh prescription free. The program applies to men who pay for the drug out-of-pocket. For men whose insurance covers part of the drug's cost, the Pfizer program will pick up the difference. "It helps strengthen the relationship," Lipsky said.

Lipsky won't discuss new marketing efforts except to say that Pfizer will amplify its message to physicians about Viagra's long record of safety and efficacy and about its preference among managed care firms. Viagra has the best insurance coverage among the impotence drugs with 52% of prescriptions covered by third-party payers, she said.

At the consumer level, Pfizer plans to "increase access" to Viagra, but Lipsky wouldn't discuss details. She said this year's consumer media budget is "similar" to last year's.

One thing that won't change is Pfizer's TV strategy. Like other companies, Pfizer runs descriptive print ads outlining Viagra's benefits and side effects in great detail. Although she "would never say never," Lipsky said Pfizer isn't planning for TV ads with the "E" word. In fact, Pfizer's TV ads have never said what Viagra does.

Drug companies often run TV ads mentioning a drug's name without saying what it does. If they want to describe a drug's attributes in a 60-second commercial, they must get approval from the Food and Drug Administration so that the commercial includes a fair balance of side-effect information. These descriptive TV commercials have become increasingly common for formerly uncomfortable-in-polite-society topics such as women's health problems and depression.