Why is Cialis so expensive? Cialis is the brand name of the generic drug called tadalafil (1). Tadalafil is also sold under the brand name Adcirca. However, Adcirca is used in the treatment of pulmonary arterial hypertension (2).
Cialis is primarily used to treat erectile dysfunction. Its generic form, tadalafil, is also used for the treatment of benign prostatic hyperplasia (3).
This paper will cover the history and effects of this drug as well as that of its generic counterpart. We will also include the factors that drive its prevailing price around the world.
Page Contents
Short History Insight: Cialis, Tadalafil, and Levitra
Tadalafil (brand name Levitra) was discovered by GlaxoSmithKline and developed with Bayer. This British and German group won the approval to market their orange pill in the USA on August 20, 2003.
The two drug companies estimate earnings of more than 1 billion dollars from this deal (4).
This entry into the US market, of course, challenged the position of what was once the only impotence treatment pill, Viagra, which was produced by the drug company Pfizer. Note that Viagra has been in the market for around five years at the time.
Apart from Levitra and Viagra, a third drug also came into play that same year. That drug was Cialis, which was developed by Icos Corporation and Eli Lily.
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Of course,, Pfizer attempted to block these product launches,, albeit unsuccessfully. These rival drugs have already taken a massive portion of the company’s market share in Europe.
For instance, in Germany, Levitra was able to snatch 14% of the market, while Cialis was able to get 27% of the total German market share.
Factors That Affect Drug Prices
We can note from the above discussion that companies definitely vie for a good opening position in many markets. Any enterprise wants to be the first to introduce a product to the market since it provides them with a considerable advantage.
It should be noted, however, that the patent for any new drug, like Viagra, for instance, has an expiry. According to the FDA, the patent term for any new medication is 20 years from the date of application (5).
Of course, the introduction of a rival product in the same market will have a significant impact both in the market share and price of a drug. Despite that fact, experts still estimate drug prices to rise in the coming years.
According to a report published by the Journal of the American Medical Association, there are more than 132 brand name prescription drugs in the United States (6), which were identified in 2017.
These are medications that get sales of more than $500 million each year. One of the drugs that made it in this list is Cialis. Now, the question is why Cialis is so expensive?
This report provides some very significant insight. Researchers from JAMA observe that the prices of brand name drugs have risen significantly in the last six years. They also estimate that price increases occur every one to two years.
The same study also points out that the pattern of price increases does not differ between new products or older products in the market. Note that newer products are those that have been around in the market for only three to six years.
The rising price of Cialis can be attributed to several factors. The Department of Health and Human Services points out that the pharmaceutical market is different from that of other markets (7).
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The HHS observes that in any functioning free market, any new competitor will usually drive the price of medications down. However, that is not always the case in the pharmaceutical industry.
The HHS observes that even though new generic equivalents of Cialis (or other brand name drugs) have been introduced, the prices of branded medication are rarely affected.
However, new legislation and policy changes since 2018 (8) have had some impact on drug pricing. Other procedures and federal regulations are underway to help reduce list prices of medications (9).
Perhaps one of the reasons why pharmaceutical companies drive the prices of their drugs is because the patent period is cut down in half by the time their product hits the market.
Just like any other company, they want to maximize potential profits that can be had in any genuine first released product. Note that it can take the FDA anywhere from 8 to 12 years to approve patents for any new drug (10).
That dramatically reduces their opportunity to recoup from any research and development costs that they may have incurred. On top of that, these companies also need to consider advertising and marketing costs as well.
This results in the fact that only 15% of the actual budget of a pharmaceutical company to be dedicated solely to researching better and more effective drugs.
Apart from that, it should be remembered that these companies were established for profit. They raise the prices of the drugs they offer to prevent any stock price crash and thus keeping their investors happy.
One last reason why Cialis and other brand name drugs are so expensive is because they have a monopoly within the 20 year patent period. That is why certain policy and federal law changes may be necessary to mitigate against all of these factors.
Cialis: Medical Information
Cialis is usually taken once a day for 18 to 24 months. That is the standard treatment for erectile dysfunction. It is available in 5, 10, and 20 mg orange tablets. This mode of administration supports findings for long term use and treatment.
Cialis Side Effects
Cialis is well tolerated by those who use the drug. However, there are a few side effects that you need to be aware of, especially if you are considering using it either as a long or short term treatment (11).
In a study in the Università Vita e Salute San Raffaele back in 2004, hundreds of test subjects were treated using the drug. The said treatment lasted for about 18 to 24 months.
Some of the side effects that were reported and observed while using this medication include the following:
- Headache (15.8% of the total number of study participants)
- Back pain (8.2%)
- Nasopharyngitis (11.4%)
- Dyspepsia (11.8%)
It should be noted that adverse events only occurred at a rate of 8.6%. There was no pattern in the occurrence of side effects observed when using the drug was used casually.
Conclusion
This drug is one of the specialty drugs used for the treatment of erectile dysfunction. Just like other branded medications, certain factors come into play, which tells us why Cialis is so expensive.
