Pfizer Inc. (PFE)’s Big Chance

Pfizer’s big Chance

I think this is a bold move, one that may be necessary for future sales to thrive. Now men don’t have to feel embarrassed about having to go to a pharmacy to buy Viagra, and they don’t have to buy the counterfeit versions. Pfizer Inc. (NYSE:PFE) persuades consumers by giving three free pills for free on the first order, and then 30% off the price on the second bottle ordered. It is important to stop the counterfeit selling of Viagra, because it could mean huge losses for Pfizer. In essence the erectile dysfunction market is now estimated to be around $5 billion.

Pfizer Inc. (NYSE:PFE) has a market cap of $206 billion. The company still has 39% of the $5 billion dollar erectile dysfunction market, and may be stronger after this bold new move. The company is the first to sell online directly to consumers, so it is taking a chance to sustain its Viagra sales. The idea was grand, because Viagra will not go off patent until the year 2020. That gives the company plenty of time to continue obtaining sales, especially on this drug that pulls in $2 billion per year.

Final thought

If all pans out with the online selling, Pfizer will be the first company to accomplish this. This would put them in the lead against other competitors, and I feel that Pfizer Inc. (NYSE:PFE) would be in a good position for long term growth.

As the company currently makes annual sales of Viagra of $2 billion, I believe that it can keep growing with its new online initiative. It will take time to set up selling online to consumers, but Pfizer has the financial backing with $25 billion on hand. Whether Pfizer Inc. (NYSE:PFE) makes it big with online selling of Viagra remains to be seen, but one thing for sure many other big pharmaceuticals will be watching.

Terry Chrisomalis has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

The article Pfizer’s Big Chance originally appeared on Fool.com.

Terry is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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