Seasoned OTC executives drive growth at independent OTC companies

With the recent OTC industry consolidation and mergers, many seasoned executives have left large OTC companies and moved on to smaller, independent companies where their past experience brings success in a nimbler environment, focused on specific brands and categories. Based on primary research for our soon-to-be published report, OTC Indies: U.S. Analysis of Independent OTC Companies, there are several examples of seasoned OTC executives driving growth at small, independent companies.Continue reading

OTC Drugs: U.S. Competitor Cost Structures

How are Shifts in Cost Structures Affecting the Leading OTC Marketers?

Major mergers and acquisitions in the U.S. OTC market have a way of shifting OTC cost structures both in the near- and long-term. For example, when major businesses are merged, such as Bayer Group’s acquisition of Merck’s U.S. OTC business or when GlaxoSmithKline and Novartis formed a consumer healthcare joint venture, the costs of goods for these organizations often rises initially. This is largely because of duplication of plants and employees. As the new venture sheds duplicate resources, the organization realizes increased profits over the long-term as a result of consolidated resources being used more efficiently.Continue reading

Nonprescription Drugs USA

Solid Growth in Most Markets and New Switches Propel the U.S. OTC Market

Driven by the solid growth of most markets, sales of the U.S. OTC market increase by 3% in 2015. Particularly high gains are seen in the allergy and antacids markets, fueled by recent Rx-to-OTC switch brands, such as Flonase Allergy Relief by GlaxoSmithKline and Nexium 24HR by Pfizer. Recently released sales data from our annual Nonprescription Drugs USA market study pegs the upper respiratory market at more than 7% growth and digestive products at almost 5% from 2014 to 2015. These growth rates are well above the average growth for these markets, propelled by new switch brands being launched and bringing in previous users of these medications from the prescription market to the OTC market.Continue reading

Allergy Relief Products

Flonase Allergy Relief Drives the OTC Allergy Market

The U.S. OTC allergy relief market has seen a period of rapid growth over the past five years, and 2015 was no exception. GlaxoSmithKline’s Rx-to-OTC switch brand Flonase Allergy Relief entered the market in February 2015 and made a huge impact on the OTC market by adding previous prescription users to the category. The OTC allergy market has seen a steady influx of Rx-to-OTC switch brands, which has resulted in rather high growth for this market over a fairly sustained period of time. In fact, the allergy category has grown by a compound annual growth of over 11% from 2010-2015, finds the latest edition of our Nonprescription Drugs USA report. This healthy increase is well above the typical growth for the overall OTC market, which grows about 2% to 3% per year on average. Continue reading

Sexual Wellness

Healthy Growth Predictions for the Booming Sexual Wellness Market

With more relaxed attitudes about sexuality, there is a proliferation of sexual wellness products in both retail and online stores. Vibrating devices, supplements for sexual enhancement, condoms, and personal lubricants are everywhere. More and more retailers and online sites are embracing consumers’ interest in adult toys. There are increased sections of brick-and-mortar stores devoted to these products while television advertisements for erectile dysfunction (ED) medications air on a regular basis. If marketers are successful in gaining FDA approval for Rx-to-OTC switches of prescription ED medications, this market is poised to see strong double-digit gains over the next few years. ED medications currently sold via prescription that could make the switch to OTC status include Cialis by Eli Lilly/Sanofi, Bayer’s Levitra, and Pfizer’s Viagra. Switch timing, likelihood of approval, impact on the market, and sales forecasts for each of these drugs are analyzed in-depth in our Rx-to-OTC Switch Pipelines USA: Competitive Assessment report.Continue reading