Market Research > Healthcare > OTC Drugs: U.S. Competitor Cost Structures

Market Research Reports: OTC Drugs

OTC Drugs: U.S. Competitor Cost Structures
To be published 2nd qtr. 2013
Base Years: 2010, 2011, and 2012

Description
Regional Coverage: United States
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DESCRIPTION
An accurate and comprehensive examination of competitor cost structures of leading OTC marketers, focusing on key trends, developments, and business opportunities designed to:
- Offer subscribers a benchmark for OTC industry cost structures
- Understand how key competitors’ OTC cost structures compare to your own
- Reveal profit and loss line items for each players’ OTC business and their largest OTC product classes
- Understand the impact of product recalls on cost structures
- Assess the cost positions of market leaders including Johnson & Johnson, Pfizer, Bayer Group, and GlaxoSmithKline
- Give subscribers critical insights in order to succeed in the face of intensifying cost pressures
- Provide an appraisal of expected future performance
Contents

TABLE OF CONTENTS

Introduction

Executive Summary

Company Profiles
For each of the companies profiled (listed in Table 2 below), the report provides information on profitability for its OTC business unit and leading product classes (illustrated in Table 3 below) and includes:

Table 1: Product Classes Covered
Allergy, asthma, and sinus medications	Nutritional products
Cough and cold preparations	Topical products
Digestive products	Other products, including home diagnostic test kits, sleeping aids, smoking cessation aids, and weight loss medications
Feminine products
Internal analgesics

Table 2: Companies Profiled
Bayer Group	Pfizer
GlaxoSmithKline	Prestige Brands
Johnson & Johnson	Procter & Gamble
Merck	Reckitt Benckiser
Novartis	Sanofi
Perrigo

Table 3: Cost Structure of the OTC Industry
Line item	% Of net sales
NET SALES
COST OF GOODS SOLD
Raw Materials
Packaging
Processing
Overhead
Total
GROSS MARGIN
MARKETING EXPENSE
Promotion
Trade
Consumer
Total
Advertising
Marketing department
Sales force/sampling
Distribution
Total
MARGIN AFTER MARKETING EXPENSES
OTHER OPERATING EXPENSES
Administration
Research and development
Total
OPERATING MARGIN

Scope
OTC Drugs: U.S. Competitor Cost Structures has been successfully completed eight times before and was last published in September 2010. The report presents information on the financial performance, profitability, and costs structures of the 11 leading OTC companies in the United States. It is designed to help OTC pharmaceutical companies benchmark their cost structures with those of their competitors. For each company, cost breakdowns are provided for its overall OTC business, as well as its leading product classes.
Company profiles also feature overviews of each company's OTC business unit, an assessment of domestic OTC sales by product class, and analysis of costs, expenses, and profitability.
Cost structures refer to U.S. operations only. Sales, expenses, and profits are presented for 2010, 2011, and 2012 and do not include extraordinary or nonrecurring items reports in published financial statements. References to overall corporate results are for the latest fiscal year available.
Key Benefits
This study provides subscribers with accurate and concise profitability information and cost structures of 11 major OTC marketers in the United States. It is designed to help nonprescription drugs firms benchmark their cost structures with those of their competitors.
Specifically, this report assists subscribers by providing:
- Line-item detail to allow companies to benchmark their business against that of competitors
- Details on how OTC marketers structure and run their operations
- Insights into decisions companies have made regarding outsourcing, resource allocation, and product portfolios
- Competitive intelligence that helps companies make decisions to take steps to lower costs
- Important comparisons of marketers' cost structures between 2005 and 2008-2012 and understanding key shifts in costs over this timeframe for major OTC marketers
Methodology
Kline is unmatched in our ability to gather hard-to-get market and competitive intelligence with a high degree of confidence. Kline's approach relies heavily on primary research, employing the use of field and telephone interviews to capture insights and information from a wide range of industry experts and opinion leaders including:
- Executives from OTC firms in functional areas such as finance, production, procurement, sales, marketing, distribution, and research and development
- Suppliers of raw materials, packaging, and processing equipment
- Service providers such as advertising agencies, logistics providers, contract manufacturers and packagers, and retailers/distributors
- Key professionals specializing in manufacturing economics, packaging, chemicals, and technology assessment
This report also draws upon nonconfidential data from Kline & Company's internal database, which contains nearly 40 years of syndicated research on the nonprescription drugs industry. The analysis is supplemented by secondary research, including a review of annual reports and other financial files and analyses. This approach has proven to be the most effective and reliable approach to obtaining accurate data and expert insights.