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Viagra launched new era
22 November 2004
The advent of Viagra unleashed
a new industry on the world – New Zealand is no exception.
Colleen Simpson delves into the erectile
dysfunction industry and finds a niche but growing market.
Erectile dysfunction (ED) is a problem that most men can bank on having at some stage in their life.
The formidable statistics have given birth to an industry which is
intent on banking the dollars of ED
sufferers.
The statistics are staggering – more than 50 per cent of men over the age of 50 can expect to have a brush with ED – even if just a temporary one – and the numbers will steadily increase as the male population ages.
ED problems have enjoyed a much higher profile since Pfizer's little
blue blockbuster Viagra made its debut in 1998, followed by other
pharmaceutical solutions including Cialis
and Levitra.
Pfizer New Zealand general manager Mark Crotty says the market experienced "huge growth" initially but has matured a little and the rate of growth has slowed.
"For years men and in fact couples were expected to have quite crude treatments or they basically perceived that that was your life and your days of having sex as part of a relationship were over," he says.
AdvertisementAdvertisement"Viagra definitely changed that mindset and revolutionised the whole issue."
The New Zealand Men's Clinic specialises in ED disorders and was set up in the pre-Viagra days but general manager Pieter Watson says the drug undoubtedly helped the market gather momentum here.
"It is growing, absolutely," Watson says. "We set up in Christchurch in 1995 and have since gone national and we are certainly growing. We're seeing more and more men."
Watson cites international research which found that 52 per cent of men aged between 40 and 70 experience some form of ED at least some of the time.
"The other thing that I think is really important is the change in the social acceptance of sex issues," he says.
To that extent Watson credits feminism with at least in part with taking the taboo out of sex talk.
"Women are allowed to have periods and sexual desire," he says. "Conversely there's also a greater acceptance that not all men are 100 per cent studs all their lives."
Viagra started its life as a remedy for angina and while it did relax the coronary arteries it also affected blood vessels in other parts of the body.
The drug's entry into the vernacular has helped break down barriers between women and men and made ED issues a more common pillowtalk topic.
High Street Clinic director Danny Wolf says there are only a handful of privately owned ED specialist operations in New Zealand, most run by doctors.
"Really it is very hard to get into the medical field to make money if you are not a doctor," he says. Spring and the silly season were traditionally busy times of year.
"It's the birds and the bees," he says. "It generates a bit more business."
More advertisements offering erection management services have given the industry's New Zealand profile a boost but Wolf says that is required to keep customers coming in through the door.
"The industry has always been there," he says. "The most difficult thing is breaking down the barriers."
Despite the widespread and often easily treated nature of ED problems, Wolf says international research shows a mere 15 per cent of sufferers seek treatment, leaving a lot of room for market development.
Underpinning the industry is an aging population which means more and more men are experiencing ED to a degree which in turn meant more grey dollars for the taking.
Watson says the margins are not high and the lion's share of the industry profits went to the global pharmaceutical giants.
For example Viagra – which is an unsubsidised drug – sells for about $90 for a box of four but the retailer hands over a hefty $76 of that to the wholesaler.
Typically operators in the ED industry charge Kiwi men a one-off fee of about $90 which entitles them to a consultation, and prescriptions.
In addition there is no repeat script fee and follow-on advice is usually included.
Watson says the industry exists with a lingering threat that a one-dose cure all will be found.
"I don't think it is likely to happen but there is a hell of a lot of money being poured into research by drug companies," he said.
What about prolific spam emails which offer cheap Viagra online without a medical consultation?
Watson is relatively unperturbed.
"Cheap Viagra is not Viagra at all," he says. "It is just the active ingredient. We've actually had customers call us and try to get us to help them bring in cheap copies of the drug (which have been seized by Customs)."
Crotty has deeper concerns.
At $61.50 a box, Pfizer's annual Viagra sales in New Zealand have topped $6 million and Crotty says the company's market share is about 60 per cent.
However, Pfizer's contact with Customs has led it to form the view that the amount of illegal and substandard drugs being bought online exceeded the value of the legitimate market.
"Our part of the market is relatively small in terms of the size of the illicit market," he said.
"But they (counterfeit Viagra) do not have the same amount of the active ingredient."
Crotty's view is the ED treatment market could grow exponentially if the illicit operations were choked.
"There's potential there absolutely for the market to growth three or fourfold."
Watson says that if there was not a crust to be made then the company he runs would not exist but agrees with Wolf that the margins are not high.
The less forthcoming nature of men means the industry is unlikely to experience the explosive growth the women's health industry has undergone in recent years.
However, Watson says he believes new players will enter the market, albeit in diversified areas.
"I'd have to say that from a marketing perspective there is always room for more but it will become more and more specialised," he says.
"It is a really slow change for men. It is going to be a hell of a long time before men start investing the same amount of money as women do in their health."
For example, email users of both sexes are receiving more and more emails from American outfits offering penis implants in the belief that there is money to be made.
If someone thinks there is money to be made, they will do it.
"No one does that (surgery) in New Zealand," he says.
"It's a real have.
"But for argument's sake someone is likely to start up that service even though there's not much clinical evidence to support it." source :-http://www.stuff.co.nz
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