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

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