WASHINGTON, June 22 (UPI) -- U.S. drug makers are finding stiffer competition as major healthcare providers demand steeper price cuts for going with a particular brand.
The Wall Street Journal says the U.S. Department of Veterans Affairs, which provides healthcare to some 5 million veterans, decided to go with Levitra instead of Viagra because it has to pay only $2.58 for a Levitra pill against about $4.90 for Viagara.
The Journal reports competition on prices paid by the biggest customers is now rising in some categories such as pills for impotence and osteoporosis.
The new Medicare drug prescription plan is seen as one of the reasons why bulk buyers are demanding steeper price cuts.
In addition to the price cut demand from larger buyers, the situation is further complicated by a slowdown in new medicines and a number of old big sellers going generic, the report says.
But consumers haven't seen the benefit largely because the trend has not affected either co-payments or the price for uninsured buyers.
