OTC sales poised for continued growth

Sales of OTC products are ramping up significantly with a $1.5 billion gain over the first six months of 2015. In sales of liquid cough/ cold/allergy products alone, there has been an increase of 27.3% to $1.5 billion, thanks to the switches of Chattem’s Nasacort Allergy 24HR and GlaxoSmithKline’s Flonase, both of which together have generated more than $275 million in sales for the 52 weeks ended June 14 across total U.S. multi-outlets, according to IRI ($138.5 million and $139.3 million, respectively).

(Click here for the full Category Review.)



Another recent switch, Pfizer’s Nexium 24HR ($278.7 million), has contributed to an 8.7% lift in antacid tablets, bringing that category to $2.2 billion.



Those recent switch success stories were expected to be dwarfed by a possible Lipitor introduction to OTC aisles. Pfizer had been working on bringing an OTC Lipitor to market, but pulled that application in July following poor actual use study results.



Outside of switch, the OTC industry is in a transitionary period with major players like Bayer and GlaxoSmithKline assuming control of much broader OTC portfolios. Bayer closed its deal on the Merck transaction in October 2014 and GSK’s joint venture deal with Novartis went live in March 2015.



“The recent deals re-enforce the attractiveness of consumer health care and the widely held belief that it is an area poised for continued growth,” Brian McNamara, head of Europe and Americas at GSK Consumer Healthcare, told Drug Store News. McNamara suggested a consolidating industry will deliver greater innovation and improved collaboration with retailers, along with greater efficiency and streamlined operations.



Beyond switch and a consolidating market, the 8,000 boomers who are turning 65 years old every day are impacting OTC sales. Pain relievers Advil and Aleve stand alongside adult incontinence brands Poise and Depend, as well as Abbot Nutritional’s adult nutrition line Ensure, as the top-five brands as ranked by sales. Not far behind those is Pharmavite’s Nature Made line of vitamins.