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Strong Rx-to-OTC Switch Performance and Holistic Marketing Drive Solid OTC Drug Market Growth in 2011, According to Kline
Date:3/29/2012

PARSIPPANY, N.J., March 29, 2012 /PRNewswire/ -- Aided by the launch of Rx-to-OTC switch brand Allegra (Sanofi-Aventis) and strong growth of private labels, allergy relief products grew 16.3% in 2011 to become the fastest growing category on the U.S. OTC drug market, according to the Nonprescription Drugs USA 2011 report by international consulting and research firm Kline & Company. The U.S. OTC drug market posted a gain of 2.4% reaching $21.4 billion in 2011 at the manufacturers' level.

Past Rx-to-OTC switch brands continued to perform well with Rogaine (Johnson & Johnson) and Plan B (Teva Pharmaceutical) both seeing strong gains in the hair regrowth products and contraceptives markets, respectively. Similarly, private-label OTCs had another stellar year in 2011, benefitting from new product launches and the sustained outages of many of Johnson & Johnson's OTC brands from store shelves. Overall, private-label OTCs are up 8.7% and now account for over a quarter of the overall OTC market.

Johnson & Johnson's OTC unit continued to experience steep declines as a result of its manufacturing issues with sales down 17.4% in 2011. However, most other major branded OTC companies performed well in 2011. Sanofi-Aventis' OTC sales were up over 100% in 2011, bolstered by the launch of Allegra. Pfizer saw an increase of 5.6% based on strong sales of the Centrum, Advil, and Caltrate lines. Novartis recorded a 4.6% gain driven by growth of Excedrin, Triaminic, and Maalox. Sales gains from Nyquil, Dayquil, Metamucil, and Align helped lift Procter & Gamble's OTC sales up 4.5%, while Bayer's OTC sales enjoyed 4.0% growth in 2011 based on gains of One-A-Day, Aleve, Bayer Aspirin, and Alka-Seltzer.

Smaller companies also managed to post solid, above industry average gains in 2011. Prestige Brands' OTC sales rose 15.1% in 2011 as it ex
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SOURCE Kline & Company
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