Rx-to-OTC Switch Market Will Double Its Recent Growth Rate

Pharmaceutical CommercePharmaceutical Commerce - April 2009

A 3.8% CAGR will rise to 8.0% for 2009-2013, says Kalorama Information

WITH THE GROWTH OF NEW TYPES of prescription medications, it makes sense that eventually there would be more Rx-to-OTC switches as they approach the end of their patent lives. That seems to be the case, according to a new study from Kalorama Information (New York), which finds that the 2008 market, worth $6.7 billion, will be increasing at a compound annual growth rate (CAGR) of 8.0% in the 2009-2013 timeframe, more than double the 3.8% CAGR of the 2004-2008 period. (The study makes a distinction between all OTC products, and those that originated as Rx products.)

By 2013, the switch market will be worth $9.6 billion, says Kalorama. The fastest-growing segments are:

  • Gastrointestinal, 9/6%/yr
  • Allergy, cold, cough, sinus, 5.7
  • Analgesics, 5.6
  • Anti-infectives, 2.2
  • Smoking cessation, 2.0

FDA has just approved OTC Prevacid (lansoprazole; Novartis), which Kalorama expects to energize the gastrointestinal segment. The key players in the Rx-to-OTC market currently are:

  • Bayer Healthcare
  • GlaxoSmithKline
  • Johnson & Johnson
  • Novartis
  • Procter & Gamble
  • Schering-Plough
  • Wyeth

Beside the projected leading Rx-to-OTC categories, Kalorama suggests that some other categories could become significant in coming years if the branded pharma companies choose to go the OTC route. These include:

  • Cholesterol-reducing drugs
  • Osteoporosis treatments
  • Overactive bladder
  • Sexual dysfunction

“The Market for Rx-to-OTC Switches” is available from Kalorama at (800) 298 5699;

www.MarketResearch.com. PC

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