Product Category
News & Events
Current position: Home > News & Events
The Over-The-Counter Drug Industry

April 10, 2013

By Kathlyn Stone, About.com Guide

 

The worldwide market for over-the-counter (OTC) drugs could exceed $70 billion by 2015, according to a report by Visiongain, a British research company. The U.S. market for OTC drugs was $17.4 billion in 2011, according to the Consumer Healthcare Products Association (CHPA), an OTC industry trade group. That's a steady, though not radical increase from 1964 when OTC sales were recorded at $1.9 billion.

More than 700 of the OTC drugs on the market today required a prescription 30 years ago.

The U.S. Food and Drug Administration has been considering making more commonly used prescription drugs for birth control, headache, asthma, high blood-pressure and diabetes available over-the-counter.

Not only would such a move make it easier to access drugs for common illnesses, it would save the government about $102 billion a year, according to the CHPA.

The downside of such a move for insured patients is that most insurance companies don't offer non-prescription drug coverage.

The American Medical Association has come out in opposition to making more drugs available over-the-counter. The AMA believes patients would be less likely to adhere to a drug treatment regimen without physician oversight.

Top Selling U.S. OTC Drugs

According to U.S. sales figures from 2011, the latest available:

·         Sales of cough and cold medicines exceeded $4. billion.

·         Painkillers had the second-highest sales volume with $2.3 billion.

·         Heartburn medicines sales reached nearly $1.4 billion.

·         Laxatives sales were $875 million.

·         Oral antiseptics and rinses sales reached $754 million.

·         Eyecare, including contact lense solutions reached $525 million in sales.

·         Anti-smoking products had sales of $494 million.

·         Other major OTC products antidiarrheals, acne remedies, topical analgesics such as anti-itch medications, first aid care and sunscreens.

 

Global Industry Leaders

Johnson & Johnson's Consumer Products division sells branded OTC products worldwide, including the painkiller Tylenol, Listerine mouthwash, Visine eye drops and Desitin for diaper rash.

Novartis sells the popular OTC painkillers Bufferin and Excedrin; Volterin, an anti-inflammatory; Pursennid and Benefiber which are fiber supplements; cough and cold products branded as Buckley's, Comtrex, and Sinecod; as well as popular medicines for treating sore throat, respiratory problems and nasal congestion.

Proctor & Gamble Pharmaceuticals' OTC products include the heartburn medicine Prilosec, Pesto-Bismal for upset stomach, Vicks cough and cold medicines, and Metamucil fiber supplement.

Other leading OTC sellers include GlaxoSmithKline, Sanofi, Bayer, Pfizer, Boehringer Ingelheim, Merck & Co., Perrigo and Reckitt Benckiser.

Market Projections

OTC sales have declined most in the countries that have been worst hit by the economic crisis. For example, the Greece government no longer subsidizes the cost of nonprescription drugs and has been unable to purchase even some essential prescription medications. Sales of OTC medications have been stable or on the rise in the United States and Western Europe where patients are more frequently turning to nonprescription drugs for the treatment of minor illnesses while reducing trips to the physician's office.

A study commissioned by the CHPA suggests that consumer spending on drugs could be reduced by $5 billion a year by using OTC meds as a first response to illness. Additional savings can be had by buying generic rather than branded OTCs.

Another CHPA study found that "88 percent of physicians recommend patients try to address minor ailments with self-care interventions, including the use of OTC medicines, before seeking professional care." The study also found that some physicians consider about 10 percent of office visits for minor ailments could be managed by patients though the use of OTC drugs and other self care.

This amounts to over 40 million appointments each year that could be avoided with self-care.