Date:22/08/2005 URL: http://www.thehindubusinessline.com/2005/08/22/stories/2005082202500100.htm

Back Competition hits me-too brands of Viagra, Cialis

Nithya Subramanian

New Delhi , Aug. 21

PFIZER Inc's Viagra and Eli Lilly and Company's Cialis are competing with each other neck-and-neck in the US markets.

In India too, increased competition, leading to price cuts, has impacted sales of sildanefil citrate and tadalafil (generic versions of Viagra and Cialis used for the treatment of erectile dysfunction (ED.) In value terms, this class of drugs has registered a growth of just 2.2 per cent during the first six months of the current year compared to the year-ago period. From a total market value of Rs 47.76 crore during January-June 2004 , the category stood at Rs 48.8 crore in the same period this year. This is lower than the 6.6 per cent growth recorded by the Indian pharmaceutical industry. In moving annual total (MAT) terms, ED grew by 17 per cent in June 2005 compared to 21 per cent in May.

In 2001, this category was the fastest growing one mainly due to the excitement surrounding the launch of me-too brands of Viagra by companies such as Zydus Cadila, Sun Pharma and Ranbaxy Laboratories. Subsequently in 2003, this market was estimated to be at Rs 42 crore, growing at 62 per cent. In 2004, it stood at about Rs 100 crore with the launch of generic versions of the Cialis drug.

According to a senior official in a pharmaceutical company, there were 10 players manufacturing sildanefil citrate in the first year, but now the segment has over 30 brands. Similarly, Ajanta Pharma, Ranbaxy, Cipla and Unichem have launched tadalafil. Now, brands from lesser-known companies such as Manforce Pharma and McLeod Pharma are among the top sellers.

"Competition has resulted in a 50 per cent cut in prices. Hence, even though companies may be promoting these drugs through various schemes, revenues have not grown. Hence, the growth in volumes is not reflected in value," he added.

A Zydus Cadila official said that sildanefil citrate brands in India continue to be prescribed by a limited number of specialists, namely psychiatrists, endocrinologists, dermatologists and urologists. "This could have impacted the growth," she added.