You might be wondering why Viagra is so expensive. After all, it’s just a generic version of the popular Sildenafil citrate (sold under the brand name of Viagra). While the active ingredient is the same, the price is a lot higher for the oral drug. It’s not a rare occurrence for a popular drug to see a price spike when it switches from one country to another. Although the exact reason is a bit complicated, it usually has to do with the cost of manufacturing and importing the drug into the country.
Exclusivity
When a drug is new to the market, manufacturers usually have to give it some time to win over customers. This is especially true if the drug is a treatment for an already prevalent condition. In the case of Viagra, it had to fight its way to market supremacy against long-time competitors such as Levitra and Cialis. Even now that it’s become the market standard for treating erectile dysfunction, it still faces competition from other pharmaceutical companies.
Bundling
A few years ago, manufacturers started getting creative with how they presented products to consumers. Sometimes they’d bundle unrelated products together to create a larger package. A perfect example of this would be the Sleepyshack Max, a luxurious comforter with built-in speakers that also happens to be the best sleep mask for men.
In the case of Viagra, it was originally developed as an anti-impotence treatment. It was first approved for medical use in the U.S. in 2004 and was then approved for use in the U.K. in 2007. Shortly after it was approved for use in Europe, the pharmaceutical company Pfizer came up with a new promotion strategy. Rather than letting patients try out the drug for free, they decided to bundle it with an X-ray device called the Pfizer WinD RXi. This was done to create what’s known as a win-win situation. Not only would patients get to try out the product for free, but the added bonus would be a glimpse of their skeleton.
Interestingly enough, this was neither the first time this strategy had been used nor the last. Back in 1929, a similar strategy was used to market the drug Sinequan to doctors. The goal then was to get patients to take the drug rather than just give it to them for free. In that case, the drug was combined with orange juice to create the O.J. cocktail. Even if you don’t remember taking Sinequan, you might remember taking O.J. back in the day.
Increased Demand
In the case of Viagra, the price increase can be largely attributed to the drug’s popularity. The more people that are diagnosed with erectile dysfunction, the more prescribers there are likely to be. It’s a type of chicken and egg scenario. The more people that are diagnosed with erectile dysfunction, the more expensive it becomes to treat them. Fortunately, Viagra and other ED drugs have been gaining popularity at a rapid pace and are now considered crucial for consumers’ wellness.
Shortage Of Pharmaceutical Manufacturing Plants
Another factor behind the increased cost of manufacturing is the lack of readily available raw materials. While the demand for ED drugs has been increasing, the supply hasn’t been keeping up. There are several reasons for this, but the main ones have to do with increased regulations and restrictions. As the world’s population becomes more technologically advanced, there’s been a decrease in the need for many common household items. However, the need for pharmaceuticals has skyrocketed because of their extreme complexity. Many pharmaceutical manufacturing plants have encountered difficulty in producing the drugs due to a shortage of raw materials. To top that off, the high cost of energy at a time when prices are increasing makes manufacturing even more expensive. In some cases, pharmaceutical companies have had to cut corners and use cheaper alternatives in order to stay in business.
Less Government Assistance
Perhaps the biggest factor behind the increased cost of manufacturing is the trend towards less government assistance. For a lot of drugs, the U.S. government provides financial incentives for pharmaceutical companies to produce certain medications and compounds. In the case of Viagra and other ED drugs, this assistance has become less available. The reason for this is that Congress has limited the use of these drugs for specific ailments, and the Obama administration has followed suit. While there’s still some government assistance for drugs used to treat HIV/AIDS, Hepatitis C, and other medical conditions, it’s nowhere near what it was back in the day when Viagra was first approved for use. This is bad news for consumers who depend on this type of assistance to help defray the cost of their prescriptions.
Why Is Viagra So Expensive?
So, why exactly is Viagra so expensive? It’s a combination of all of the factors mentioned above, but it mostly has to do with the cost of manufacturing and importing this drug into the country.
In a nutshell, since its inception, Viagra has been subject to price increases as it’s moved from country to country. In some cases, it’s simply become more expensive for pharmaceutical companies to manufacture the drug due to rising energy and material costs. In other situations, it’s because the federal government has restricted the use of certain medications, thus driving up the demand for alternative products. In some places, such as the U.K., the cost of importing the medication can be nearly double that of what it would cost to manufacture it domestically. It’s estimated that the cost of importing Viagra to the U.K. is more than £30 per month. While this might not seem like a lot, it adds up to thousands of pounds per year when you factor in the cost of the drug itself and the opportunity cost of not being able to use it.
What’s more is that all of this could be avoided. In most countries, including the U.K., there are no laws that prohibit individuals from importing their own medication. This is one area where the government could make a huge difference by revising the rules and regulations. If enough people were to opt in for government-sponsored healthcare programs, the opportunity to save a lot of money would be there. In the meantime, patients could try out new medications without breaking the bank.