Free Lipitor, Viagra, 70 other drugs for jobless
The recession might be a little less painful for some Americans, who won't lose their prescription medications if they lose their jobs.
Pfizer Inc. said Thursday it will give away more than 70 of its most widely prescribed drugs, including Lipitor and Viagra, for up to a year to people who have lost jobs since Jan. 1 and have been taking the drug for three months or more. The announcement comes as the unemployment rate topped 8.9 percent in April.
Pfizer stands to benefit, too _ by keeping its customers, and with a tax write-off that will cover much of the cost of the donations. The move also buys the world's largest drugmaker some good will as Washington looks to overhaul the health care system.
"Everybody knows now a neighbor, a relative who has lost their job and is losing their insurance. People are definitely hurting out there," Dr. Jorge Puente, Pfizer's head of pharmaceuticals outside the U.S. and Europe, told The Associated Press in an exclusive interview Wednesday. "Our aim is to help people bridge this point."
The 70-plus drugs covered in the program include several diabetes drugs and some of Pfizer's top money makers, from cholesterol fighter Lipitor and painkiller Celebrex to fibromyalgia treatment Lyrica and Viagra for impotence. Also included are some antibiotics, antidepressants, heart medications, contraceptives and smoking cessation products. Cheaper generic versions are available for most of the drugs.
The program will likely help prevent patients from switching to cheaper brands or generics through the worst of the recession and could help retain those taking top-seller Lipitor, which will begin competing with generic versions next year.
The giveaway was heralded by some as a brilliant marketing move that will generate low-cost publicity, build consumer loyalty and keep inventory from piling up.
"What are the alternatives? To slow down manufacturing operations?" asked WBB Securities analyst Steve Brozak. "This is going to go down as a Harvard Business School textbook example of what to do with product when you can't sell it." Pfizer, among other drugmakers, has seen sales fall for many drugs as people cut spending, even for essentials such as health care.
The 10 best-selling drugs included in the program accounted for more than $26 billion, or 64 percent, of Pfizer's total sales last year. Officials for New York-based Pfizer said they don't know how much the program will cost and haven't put a cap on spending for it.
Brozak said the cost would surely be far less than a national marketing campaign, which can run hundreds of millions of dollars annually.
The cost will be defrayed by tax deductions. Companies that donate inventory can deduct their cost to make the product plus one-half the difference between their cost and the selling price from their taxable income. Pfizer is running the program through its charitable foundations.
"At this point it's too early to consider the benefit from this program," company spokesman Christopher Loder said. "But that's not the reasons we're doing this. We're doing this because patients are in need."
Many drugmakers, including Pfizer, have been raising prices, partly to offset declines in revenue as the global recession reduces the number of prescriptions people can afford.
But companies in other industries have recently offered to help laid-off customers. In February, Hyundai Motor Co. guaranteed it would temporarily make car payments for people who lost their jobs, and Ford Motor Co. and General Motors followed shortly after.
Drugstore operator Walgreen is offering free in-store clinic visits to the unemployed and uninsured for the rest of the year. And men's clothing retailer JoS. A. Bank Clothiers Inc. has offered to refund the price of a suit if the buyer loses his job.
Pfizer said the idea for the program came just five weeks ago at a leadership training meeting as workers discussed how a lot of patients are struggling.
Puente said he urged top management to approve the program, presenting a recent Associated Press article about how newly uninsured diabetics are suffering serious complications because they can no longer afford the medicines and testing supplies. Approval came quickly.
"It was my idea," he said. "I floated it, and the reception it got was so dramatic that it very quickly became our idea."
Colleagues suggested employees could donate to a fund to help support the effort, Puente said. He said some workers had tears in their eyes when discussing how they could help people who had lost jobs.
Applicants will have to sign a statement that they are suffering financial hardship and provide a "pink slip" or similar employer notice.
Patients can call a toll-free number, 866-706-2400, to sign up, and those whose drugs are not included in the program will be referred to other company aid programs. Starting July 1, patients can also apply online at , which has information about the other aid programs. http://www.PfizerHelpfulAnswers.com
Applications will be accepted through Dec. 31, with medication provided for up to 12 months after approval _ or until the person becomes insured again.
Pfizer and the rest of the drug industry are trying to have a voice in the debate over how to overhaul the U.S. health care system, partly by joining in a pledge this week to help hold down inflation of health costs.
"There's a long-term benefit there, beyond the good will and the publicity," said David Heupel, health care portfolio manager at Thrivent Large Cap Growth Fund. "Pfizer is trying to maintain their (market) share, if not grow their share" by keeping people from switching to generic versions of its drugs to save money.
"If you're already taking medication that's working, typically doctors don't push to change it," Heupel said.
Pfizer said that from 2004 through 2008, its patient assistance programs helped 5.1 million people get 51 million Pfizer prescriptions for free or at reduced cost, with a total value of $4.8 billion.
Earlier this year, rival Merck broadened the eligibility for its own assistance program to people with a household income below $88,000 for a family of four with no insurance, among other qualifiers. Previously it was $44,100. The program has been in place for about 50 years.
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LINDA A. JOHNSON and MATTHEW PERRONE | 05/14/09 08:36 PM |