29 November 2016 - Pfizer raised the list price of Viagra by 13% in June. Less than a week later, Eli Lilly pushed up the price of its competing pill Cialis by the same percentage.

The two companies, though rivals, followed a common industry practice: raising prices almost in lock-step. For years, Pfizer and Lilly have taken increases on their erectile-dysfunction drugs within weeks of each other — sometimes even on the same day — keeping the list price of each pill within a few dollars.

The practice highlights what many see as a big problem in the drug industry: even when there is competition, prices can continue to climb. That is because patients tend to stick with a drug that works for them, and health insurers and drug-benefit managers sometimes have contracts for drugs that prevent switching to cheaper options.

Read The Australian article