Pfizer discounting drugs
Pfizer, the world's largest drug maker, yesterday unveiled a plan to provide the company's prescription drugs at a discounted price to the 43 million Americans living without health insurance.
The initiative, called Helpful Answers, comes amid increasing crackdowns on imported drugs from Canada or other countries at lower prices by Pfizer and other drugs companies. The plan, launching in August, enables uninsured Americans to buy Pfizer drugs at prices on a par with what large insurers pay - an average of 37% off current retail prices. Pfizer doesn't disclose wholesale prices. Helpful Answers covers all Pfizer drugs, including the popular cholesterol-lowering drug Lipitor, anti-depressant Zoloft, anti-biotic Zithromax and "yes, even (impotence drug) Viagra," Pfizer CEO and chairman Hank McKinnell, enroute to a World AIDS Conference in Thailand, said in videotaped remarks. The program also expands coverage of an existing Pfizer plan to provide families making less that $31,000 per year with free prescription drugs from doctors' offices, qualifying community health centers or hospitals. It will also extend Pfizer's program for low-income Medicare recipients who have approved drug discount cards to get Pfizer drugs for a flat fee of $15 each, after exhausting the current $600 federal credit. "We applaud Pfizer for making drugs available for many seniors in need, but it doesn't help a lot of people who pay high out-of-pocket drug costs. In 2003 prescription drugs increased 3.4% when inflation climbed only 1.2%," said Lois Aronstein, New York director of the American Association of Retired People. While the news was praised by politicians and community groups, it was greeted cautiously by Wall Street. "It's a nice gesture in an election year when, as usual, pharmaceutical companies seem to be bad guys, said Girish Tyagi, pharmaceutical analyst at Thomas Weisel Partners. "My net sense is that people who do not have drug insurance will probably have as much trouble paying $50 as they do $75." Analysts said they expected other big drug companies to follow Pfizer's lead. The new program was seen likely to have little impact on Pfizer profits since its shares edged off just 15 cents to $33.72. Since last August, Pfizer has been enforcing contracts with pharmacies and distributors in Canada which prohibit them from exporting drugs to the U.S.
In January and February, warning letters were sent to 7,000 pharmacies and 22 distributors, Pfizer spokesman Jack Cox said. Pfizer then cut off 100 pharmacies and two distributors, who were later reinstated.
