OTC Competitor Cost Structures

OTC Drugs: U.S. Competitor Cost Structures

Base Year: 2013, 2014, and 2015
Published August 2016
Regional Coverage: United States

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This report is an accurate and comprehensive examination of competitor cost structures of leading OTC marketers, focusing on key trends, developments, and business opportunities.

This Report is Designed to:

  • Offer subscribers a benchmark for OTC industry cost structures
  • Reveal profit and loss line items for each players’ OTC business and their largest OTC product classes
  • Assess the cost positions of market leaders including Johnson & Johnson, Bayer Group, Pfizer, and GlaxoSmithKline
  • Understand the impact of industry consolidation on OTC cost structures
  • Understand how key competitors’ OTC cost structures compare to your own
  • Understand the impact of product recalls on cost structures
  • Give subscribers critical insights in order to succeed in the face of intensifying cost pressures
  • Provide an appraisal of expected future performance

Report Contents

Introduction

Executive Summary

  • State of the industry
  • Major shifts in costs for the industry
  • Market sales and growth
  • Industry cost structure
  • Key factors influencing profitability
  • Analysis of key expenses
  • Product class cost structures (for those listed in Table 1)
  • Historical perspective
  • Appraisal and outlook

 
 
Company Profiles

For each of the companies profiled (listed in Table 2), the report provides information on profitability for its OTC business unit and leading product classes (illustrated in Table 3 and Table 4) and includes:

  • Business unit cost structure
  • Profitability
  • Cost structure of leading product classes
  • Corporate overview
  • Corporate sales and profits
  • Analysis of key expenses
  • Appraisal

* Subject to charter subscriber input

Table 1: Product Classes Covered
Cough and cold preparations Topical products
Digestive products Upper respiratory products
Feminine products Other products, including home diagnostic test kits,
sleeping aids, smoking cessation aids, and
weight loss medications
Internal analgesics
Nutritional products
Table 2: Companies Profiled
Bayer Group Pfizer
Carlyle Group Prestige Brands
Church & Dwight Procter & Gamble
GlaxoSmithKline Reckitt Benckiser
Johnson & Johnson Sanofi
Perrigo

 

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

 

Table 4: Product Classes Profiled by Company
Company Classes profiled
Bayer Group Upper respiratory products, internal analgesics, nutritional products
Carlyle Group Nutritional products
Church & Dwight Nutritional products, other products, topical products
GlaxoSmithKline/Novartis Digestive products, topical products, upper respiratory products, other products
Johnson & Johnson Upper respiratory products, internal analgesics, topical products, other products
Perrigo Internal analgesics, digestive products, upper respiratory products
Pfizer Internal analgesics, upper respiratory products, nutritional products
Prestige Brands Upper respiratory products, internal analgesics, feminine products
Procter & Gamble Upper respiratory products, digestive products, other products
Reckitt Benckiser Upper respiratory products, nutritional products, feminine products
Sanofi Upper respiratory products, topical products, other products

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Scope & Benefits

OTC Drugs: U.S. Competitor Cost Structures has been successfully completed nine times before and was last published in July 2013. 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 2013, 2014, and 2015 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. Companies, product classes, and line items covered in this analysis are shown in the Table of Contents on the previous page.

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
  • Competitive intelligence that helps companies make decisions to take steps to lower costs
  • Insights into decisions companies have made regarding outsourcing, resource allocation, and product portfolios
  • Important comparisons of marketers’ cost structures between 2013-2015 and understanding key shifts in costs over this timeframe for major OTC marketers

 

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