| The peter principle
Sunday, 13 Aug 2006
Viagra and its competitors are big business, Linda Leatherdale
writes, but who has time for sex?
Oh, silly me. I thought staying power was an investment portfolio
that keeps performing.
But no, it's getting it up under the sheets and keeping it
up.
That's where performance really counts, the experts tell
me, and where staying power can get a big boost from drugs
such as Viagra, Levitra and Cialis.
And talk about getting a bang for your buck.
If an impotent man can get an erection for up to four hours,
that's only $4 an hour -- considering most pharmacies sell
a four-pack of 100 mg Viagra tablets for $68.22.
And no, don't expect OHIP to cover the cost. Some company
health plans do, however.
The boys who work at General Motors must love this. The world's
biggest automaker spends $17 million US a year on Viagra,
Cialis and other erectile
dysfunction drugs. It's part of GM's labour agreement
with the union, as well as benefit plans for salaried workers.
Apparently, Ford and DaimlerChrysler offer similar coverages.
Also, the wonder drugs are available to Canada's soldiers
under the military's health plan.
Still, I have a tough time swallowing the fact that the erectile
dysfunction drug market has exploded into a $2.1-billion US
business globally, when nobody wants to admit to using the
drugs.
"What I'm told is if you take one of those pills, you
end up with a dream machine. But I can't speak from experience,
because I've never used them," says Bay Street veteran
Fred Ketchen, ScotiaMcLeod's director of equity trading.
Bottom line is that the pharmaceutical giants who manufacture
these drugs might have overestimated the size of the market,
once touted to be worth three times more than it is.
One might wonder if that's because studies show aging baby
boomers are, on average, only having sex twice a month. That's
if they're having sex at all in our stressed-out, over-worked,
over-taxed existence.
A study of 2,500 people, commissioned by drug maker Pfizer,
which manufacturers Viagra, shows 58% of people aged 40-64
are too tired for sex, while 42% say they're stressed out,
and 40% say they have no time.
The study also found that more boomers are tempted to go
to a gourmet restaurant than have a night of sex.
So, it is any wonder there's such fierce competition among
the manufacturers of these drugs, in a market that may have
gone soft?
It was in 1998, the little blue pill -- known as the Pfizer
Riser -- sparked a new sexual revolution. Here in Canada,
in just one year, $41 million was spent on Viagra with almost
535,000 prescriptions filled.
Then in 2002, German heavyweight Bayer AG, unveiled its
dream drug, Levitra. In 2003, U.S. pharmaceutical giant, Eli
Lilly and Co, brought to market its wonder pill, Cialis.
Last year, these three companies, through various marketing
partnerships, spent a stunning $373.1 million US in direct-to-consumer
advertising.
Ketchen says one way to get in on all this action is buy
shares.
"Some of these pharmaceuticals have done quite well,"
he said. Pfizer is trading in the $26 range, close to its
52-week high of $26.99; while Eli Lilly shares are near $57,
shy of their high of $59.24.
Overall, Ketchen would just like our stock market to take
a little blue pill. "Pump them up and keep them up. That
would make me happy."
Source: http://www.ottawasun.com/Lifestyle/Health/2006/08/13/1752143-sun.html |