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Govindkrishna Seshan / Mumbai February 28, 2006
It's more expensive than rivals and can't be advertised: how will
Pfizer sell its wonder drug in India?
When Pfizer launched Viagra seven years ago, the pharma giant knew it
had a winner on its hands. But the little blue pill was also more
dangerous than dynamite. This was the world's first drug to cure
impotence - an incredibly sensitive subject that came complete with
religious and moral undertones.
Pfizer didn't take any chances. The pharma giant first sought - and
received - approval from the Vatican and other religious heads for the
drug. It next came up with a less embarrassing term for impotence -
erectile dysfunction (ED), which made the condition sound more like an
illness that could be cured rather than an emasculating failure.
Then came the celebrity endorsements and the sponsorships of
typically-male pursuits. Pfizer ran television commercials with US
presidential candidate Bob Dole and legendary footballer Pele
admitting they suffered from ED.
Viagra also sponsored Nascar and is even now associated with major
league baseballer Rafael Palmeiro and Nascar driver Mark Martin. As it
turned out, Viagra's was a textbook launch, with the brand soon
accounting for a whopping 96 per cent of the US market for ED.
Viagra in India is a different story. Pfizer launched the drug in the
country only in December 2005, seven years after its international
debut. (The grey market, though, has been awash with Viagra and its
clones for some time now.) Viagra is also several times more expensive
than other ED medicines - and there are several of those. Those are
bitter pills to swallow for a company that single-handedly created the
market for ED medication.
Still, Pfizer defends its delayed kick off. "The environment in India
is only now conducive to the launch of global brands," points out K G
Ananthakrishnan, senior director, pharmaceuticals, Pfizer India,
possibly referring to the changes in patent protection laws that took
effect from January 2005.
But Viagra's late launch in India is not as big a problem as its cost.
At Rs 463 - no, not for a strip of 10, but a single, 50 mg pill -
Viagra is 20 times more expensive than the Indian market leader in the
category. Mankind Pharma's Manforce, which leads with a 30 per cent
share of the Rs 100 crore market, sells a 50 mg pill at Rs 19.
Viagra in the US didn't have to fight off competition. Here, close to
58 brands exist in the ED medication category, beginning with Zydus
Cadila's Penegra (launched in 2001). Pfizer's clearly got its work out
with Viagra.
But industry watchers are looking at the brighter side. Says Sanjiv
Malik, national president, Indian Medical Association, and president
SAARC Medical Association, "There is a certain psychological advantage
that an original always enjoys." Still, even Malik accepts that
Pfizer's not going to find the going too easy. "Most doctors in India
have already been using a particular brand; it will be difficult to
change this behaviour," he points out.
That means Pfizer has not just lost the first-mover advantage in
India, it also needs to wage war against well-entrenched players such
as Ranbaxy's Caverta, Zydus Cadila's Penegra and Mankind's Manforce.
Worse, the company can't replicate its American launch tactics. Under
Indian law, prescription drugs like Viagra cannot be marketed through
mass media - that rules out a high-decibel ad campaign.
But Pfizer is seeing opportunities in the problem. According to the
company, the Rs 100 crore ED medication market in India covers only 2
per cent of the population that suffers from the ailment. Remember, ED
is a condition people don't like to even acknowledge, leave alone treat.
That point was driven home by research conducted last year by an
external agency for Pfizer. The significant takeaway from the study
was that it's not just patients - even doctors shy away from bringing
up the subject.
The road ahead was clear: Pfizer would concentrate on increasing the
rate of detection of ED. Ananthakrishnan points out that ED prevalence
is "largely a question of underlying diseases and causes". That means
men with existing conditions of diabetes, cardiovascular diseases and
hypertension are also likely to suffer from ED - stress is a major cause.
Which means Pfizer need not restrict its Viagra marketers to fertility
clinics and urologists. Heart specialists and endocrinologists will
form an important contact point for Viagra-related communication and
for a better understanding of how many men actually suffer from ED.
Pfizer hopes its past record in taking alternative routes will come in
handy. For instance, based on its interactions with medical
practitioners, the company had in-depth knowledge of how difficult it
is to diagnose clinical depression.
In 2003, Pfizer India introduced Prime MD Today, a screening and
diagnostic tool designed to help general practitioners better detect
cases of depression among their patients. The company also worked
closely with teams of psychiatrists to educate and improve awareness
of depression.
The result? From Rs 2.58 crore in 2003, sales of Daxid - Pfizer's anti
depressant medication - rose to Rs 4.89 crore the following year. The
company claims that Prime MD Today had a huge role to play in the growth.
Now Pfizer is looking to recreate a similar success story with Viagra.
The opportunity: drugs like Viagra are commonly mistaken to be pills
that increase potency, rather than as cures for an ailment.
Marketing consultant R B Smartha, the managing director of Interlink
Marketing Consultancy, spells out the problem. "Till date, pharma
companies have not made it clear that Sildenafil Citrate and Tadafil
tablets are only for those who suffer from ED and are not for
recreational use."
That will now change. Next month, Pfizer will launch a print campaign
that aims to create awareness of ED and its medical cure. Globally,
too, the company uses a mix of celebrity endorsements and awareness
campaigns to get its message across. Agrees Pfizer US spokesman Daniel
Watts, "Pfizer has aired non-branded, disease-awareness advertisements
for ED, as well as brand-specific advertisements in the US."
Analysts believe that Viagra's premium pricing will help Pfizer India
launch a high-profile campaign (even if it isn't brand-specific),
since the company can afford generous media spends.
Of course, even if it has lost the first-mover advantage, Viagra
already enjoys tremendous brand equity in India. The drug is already
almost synonymous with ED medication. Pfizer executives point out that
even before the official launch, Viagra sales in the grey market were
in the range of $1.5-2 million (Rs 9 crore) a year. Pfizer is hoping
to bring over most of those buyers to the legal market and help it
reach a 10-15 per cent share of the market in the next two years.
The company is also counting on its wealth of knowledge on ED to help
it gain better access to the medical fraternity. Branded communication
to registered medical practitioners and the plain vanilla route of
medical representatives calling on doctors is, of course, part of the
communication strategy. But Pfizer is also bringing in thought leaders
to address gatherings of medical men.
Recently, for instance, the company hosted a conference by Peter
Ellis, the joint patent holder for Viagra, where Ellis shared current
research findings on Sildenafil Citrate (the molecule on which Viagra
is based) with the audience.
But even if doctors buy into Pfizer's depth of knowledge, what is in
it for the trade? Analysts feel that not many chemists would want to
stock the pill because of its steep price tag - they may not get the
required sales volume. Pfizer counters that, saying the price will be
a major attraction for chemists, given the margins on the drug.
On average, chemists get margins of 20 per cent on the price of a
drug. Convert percentages into actuals and Pfizer's commission (Rs 92
on the sale of a single pill of Rs 463) is unparalleled. Besides,
Pfizer is attacking only the top layer of the market - the top 29
cities, where chemists stock even more expensive drugs.
Will Pfizer's strategies help Viagra sales rise?
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