Rx-to-OTC switching making comeback

There are 14 prescription drugs in the USA which exceeded $20.0 billion in sales in 2006, that may have the potential to reach the over-the-counter market in four years. Prescription to OTC switches were frequent in 2006 and 2007 and a new report by Kalorama Information, titled The Return of the Rx to OTC Switch: Market Analysis and Product Management Strategies, predicts this trend will continue.

The markets for Rx to OTC are forecast to reach $5.0 billion in 2008 and increase close to 40% by 2010. More than half of the revenues in 2008 will be from allergy medications that have already made the switch, such as Claritin, Benadryl, Sudafed, Nasalcrom, Mucinex and, most recently, Zyrtec. However, the forecast compound annual growth rate from antilipidemic agent switches between 2008 and 2013 far outpaces that of the allergy category (127.5% versus 3%), the report says.

"Lagging Food and Drug Administration approvals led to a brief absence of Rx-to-OTC switches in the pharmaceutical marketplace, but 2006 and 2007 saw a number of switches," notes Melissa Elder, the report's author. "We believe this product management tactic will continue to be aggressively utilized as companies seek ways to extend revenue lifecycles," she adds.