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DSN Breaks Down the Brands and Categories Driving the Business

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A DSN Special Report OTC BUYERS GUIDE DSN breaks down the brands and categories driving the business. TABLE OF CONTENTS Baby boomers, prevention drive OTC ...... 20 Rx-to-OTC switch .................................. 22 Q&A: The future of OTC ..................... ..... 22 Cough-cold, allergy & sinus .................... 24 Diagnostics ........................................... 26 Digestives ............................................. 28 Ear & eye care ....................................... 30 Pain relief ............................................. 32 Vitamins, minerals & supplements .......... 34 Sleep remedies ..................................... 36 Smoking cessation ................................ 38 Weight loss ........................................... 40 Products ............................................... 42 DRUGSTORENEWS.COM MARCH 17, 2014 • 19 OTC Buyer’s guide Baby boomers, preventive solutions drive OTC SECTION BY MICHAEL JOHNSEN OVER-THE-COUNTER MARKET* 9 TOTAL = $40.2 BILLION INTIMACY HEALTH Overall, the OTC sector in 2013 realized $0.9/2.2% $40.2 billion in sales, according to data culled SMOKING CESSATION 10 $0.9/2.2% FEMININE CARE from OTC categories tracked by IRI. That’s FOOT CARE $0.5/1.2% $1.0/2.5% up from the $38.3 billion that DSN reported SLEEPING REMEDIES 8 last year. The 2013 sales numbers reflect a DIAGNOSTICS $0.4/1.0% $1.0/2.5% strong 2012-2013 cough-cold season and the MISC. HEALTH COUGH/COLD/ relaunch of Tylenol, Excedrin and Motrin. REMEDIES7 ALLERGY/SINUS1 The aging of the baby boomer is reflected $1.5/3.7% $7.7/19.2% across the best-selling OTC brands. Two of the top five brands are pain relievers. The EYE CARE/ adult incontinence brand Poise holds the No. EAR CARE6 2 spot in terms of OTC sales, and standing at $1.9/4.7% No. 6 is Ensure’s RTD protein shakes. VITAMINS While baby boomers will continue to drive FIRST AID5 $6.5/16.2% the pound of cure, overall more Americans $2.8/7.0% are more often seeking their ounce of pre- vention. According to Bain & Co.’s recent Healthy Living Survey, 75% of consumers are in pursuit of a healthier lifestyle. Take 4 WEIGHT LOSS/ that predominant mindset, coupled with the PAIN RELIEF $4.4/10.9% NUTRITIONAL MEAL 2 outcomes-driven preventive focus associated DIGESTIVES3 REPLACEMENTS with the Affordable Care Act, and you have a $5.3/13.2% $5.4/13.4% formula for OTC success at retail pharmacy. *In billions; percent reflects share of total OTC/natural health segments Retailers are already supplying preven- Source: IRI for Total U.S. Multi-Outlet (supermarkets, drug, mass, military commissary, and select club and dollar stores) for the 52 weeks tive health solutions. H-E-B and Rediclinic ended Dec. 29, 2013 1 Includes hand sanitizer, chest rubs, humidifiers, cold/allergy/sinus liquids, cough drops, cough syrup, nasal products, and cold/allergy/ last month augmented its Weigh Forward sinus tablets. 2 Includes weight control/nutrition liquid/powder, weight control candy/tablets, energy shots, and nutritional/intrinsic health weight-loss clinic with an online compo- value bars. 3 Includes motion sickness, gastrointestinal tablets, gastrointestinal liquids, and adult incontinence. 4 Includes external anal- gesic rubs, internal analgesics, and heat/ice packs. 5 Includes first aid tape/bandage/gauze, first aid kits, muscle/body support devices nent. Also, GlaxoSmithKline and Walgreens and first aid treatment. 6 Includes ear care products and ear drops/treatments, as well as eye/contact lens care products. 7 Includes hemorrhoidal cream/ointment/spray, hemorrhoidal remedies, lip treatment, caffeine tablets/liquids, epsom salts, lice treatments and wart teamed up to launch Sponsorship to Quit, a removers. 8 Includes home health care/kits and family planning. 9 Includes sexual health and personal lubricants. 10 Includes vaginal free online quit-smoking program. treatments and all other feminine hygiene/medical treatments. TOP 10 OTC BRANDS Brand / segment Sales* % Sales Chg $ Share** $ Share Chg** Units* % Unit Chg Avg Price Avg Price Chg Advil / internal analgesic tablets $490.9 -0.6% 15.6% -0.5% 66.6 -2.4% $7.37 $0.14 Poise / adult incontinence products 379.1 7.3 26.7 0.3 46.8 3.4 8.11 0.29 Merck & Co. / foot care devices (Dr. Scholl's) 369.9 2.0 54.6 0.3 38.3 -1.7 9.66 0.35 Aleve / internal analgesic tablets 364.0 2.4 11.6 0.0 48.4 -5.2 7.52 0.56 Prilosec OTC / antacid tablets 358.8 -10.4 18.2 -1.9 20.0 -9.7 17.98 -0.13 Ensure / weight-control/nutritionals liquid/powder 343.5 6.5 13.2 0.1 33.6 0.0 10.23 0.62 Depend / adult incontinence products 341.1 0.2 24.0 -1.4 23.1 -5.3 14.78 0.81 5 Hour Energy / single-serve energy shot 331.6 -11.8 85.7 -0.3 58.5 -9.1 5.66 -0.17 Zyrtec / cold-allergy-sinus tablets/packets 317.3 1.8 7.5 -0.2 16.9 2.0 18.72 -0.04 General Mills Fiber One / nutritional/intrinsic health value bars 305.4 25.2 15.7 1.5 84.7 27.8 3.60 -0.08 * In millions Source: IRI for the 52 weeks ended Dec. 29, 2013, Total U.S. Multi-Outlet (supermarkets, ** Percent share of segment drug stores, mass market retailers, military commissaries and select club and dollar retail chains) 20 • MARCH 17, 2014 DRUGSTORENEWS.COM OTC Buyer’s guide FDA makes unprecedented Rx-to-OTC switches Two Rx-to-OTC switches in the past really a first for the FDA,” said Mackey, PROJECTED RX-TO-OTC CANDIDATES year may serve as a harbinger of what who also is chairman of the Consum- the Food and Drug Administration er Healthcare Products Association. Brand Class Company will consider “switch” worthy. They “We’re very favorably disposed to the AcipHex PPI Eisai both address chronic care needs, and direction that the FDA is following, Actonel Osteoporosis Warner Chilcott they both represent first of their kind and we [as an industry] are very inter- medicines to the nonprescription aisle. ested in working with them to enable Boniva Osteoporosis Genentech The first of the two is Merck Con- more novel switches in the future.” Cialis ED Lilly USA sumer Care’s Oxytrol for Women, “[All told], Rx-to-OTC switches Clarinex Allergy Merck a thin, flexible patch for the relief of are expected to continue, with more Crestor Statin AstraZeneca overactive bladder in women. It is the than $10 billion in branded prescrip- first and only over-the-counter option tion sales likely to switch in the next Detrol LA Overactive bladder Pfizer that treats OAB symptoms, including five years,” said Joseph Papa, Perrigo Ditropan Overactive bladder Janssen Pharmaceuticals urinary incontinence, urgency and fre- chairman, CEO and president. Evista Osteoporosis Lilly USA quency. With 20 million OAB sufferers, Much of that includes other medi- Fosamax Osteoporosis Merck sales of Oxytrol are projected to reach cines in the respective classes of Oxytrol as high as $50 million. (e.g., Pfizer’s Detrol LA) and Nasacort Imitrex Migraine GlaxoSmithKline The second is Chattem’s Nasacort (e.g., Merck’s Nasonex). Pfizer is expect- Lescol Statin Novartis Allergy 24HR — the first and only ed to bring the proton-pump inhibitor Levitra ED Bayer/GlaxoSmithKline nasal corticosteroid on OTC shelves. Nexium and its $2.1 billion volume in Lipitor Statin Pfizer Kline Healthcare’s industry analyst prescription dollars over-the-counter Laura Mahecha projected Nasacort Al- this spring, if not later this year. Nasonex Allergy/corticosteroid Merck lergy’s annual sales potential to reach Statins, such as Pfizer’s Lipitor, also Nexium PPI Pfizer remain speculative switch potentials as high as $200 million. Pravachol Statin BMS “You are seeing a new openness, despite the FDA having denied statin I think, on the part of the FDA to the switches in the past. To date, no switch Propecia Male pattern baldness Merck switching of products that maybe here- application has taken advantage of Protonix PPI Pfizer tofore wouldn’t have been considered the FDA’s Nonprescription Drug Safe Viagra ED Pfizer for switch,” Jim Mackey, Merck Con- Use Regulatory Expansion that opens Vytorin Statin Merck sumer Care SVP, U.S. region head, told the door to utilizing healthcare profes- DSN. “[Oxytrol] is the type of product sionals and technology in expanding Zetia Statin Merck — treating a chronic condition — that is the FDA’s conditions of safe use. Source: DSN research that there will be opportunities this year to enact the legislation in the fall. Jim Mackey: We have a huge opportunity in this time of massive change Q&A to better position OTC medicines as that critical first-line treatment in the The future of OTC overall healthcare continuum. Scott Melville & Jim Mackey DSN: What are the key opportunities for the OTC industry? Consumer Healthcare Products Association Mackey: We see many … opportunities on the forefront where consumers In advance of CHPA’s 2014 Annual Executive Conference, DSN sat can responsibly treat chronic conditions with over-the-counter medicines. down with Scott Melville, CHPA president and CEO, and Jim Mackey, We’re very favorably disposed to the direction that the FDA is following. CHPA chairman, to discuss what’s in store for the OTC industry. Melville: The association under the board’s leadership … is undertaking DSN: Is there progress in making OTCs eligible for FSAs? a very exciting research project on consumer insights [concerning] over- the-counter medicines. … We’re doing some quantitative and qualitative Scott Melville: There’s legislation introduced in the House and the Senate. research that we will be releasing later this year. … Given that the budget stalemate is behind us and President Obama has conceded that improvements to ACA are necessary, … we’re hopeful FOR THE COMPLETE Q&A, VISIT DRUGSTORENEWS.COM/AUDIO 22 • MARCH 17, 2014 DRUGSTORENEWS.COM OTC Buyer’s guide COUGH-COLD, ALLERGY & SINUS Remedy sales up in less robust season Though the 2013-2014 cough-cold and flu season has been charac- BY THE CHANNEL terized as less robust as compared with a year ago, sales of cold and allergy remedies still are up significantly.
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