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Oct

- Are Over-the-counter (OTC) medicines sold directly to a consumer without a prescription from a healthcare professional?
- Are OTC drugs selected by a regulatory agency to ensure that their ingredients are safe and effective?
- Is “Self-medication” similar to OTC medicine?
- Do the “OTC medicines” include also: healthy food, diagnostic tests, and so on?
If you have answered YES to all the questions, you know perfectly what an OTC product is.
The pharmaceutical business model has been in transition for several years. Previously, unique positioning was achieved through medical evidence and differentiation protected by a patent. Manufacturers were allowed to charge a sufficient price premium to provide a positive return on investment by the time the patent expired, usually between eight and ten years after launching.
After low-price generics flooded the markets, drastic revenue erosion occurred quickly. Having reached this point, players typically stopped investment. Pfizer, for example, recently reported that it had cut back on marketing support for its multi-billion-dollar cholesterol-lowering drug Lipitor® (atorvastatin), which reached loss of exclusivity at the end of 2011.
CAN YOU PROLONG THE LIFE OF YOUR BRAND WHEN IT CHANGES TO GENERIC STATUS?
To answer this question we look at Oxytrol which will be the first drug in its category to be sold over the counter. http://www.reuters.com/article/2013/01/25/us-merck-bladder-idUSBRE90O0SW20130125
Health regulators approved Merck & Co’s nonprescription version of Oxytrol to treat overactive bladder in women ages 18 and older, the FDA agency said recently.
The FDA decided to approve the OTC version of the Merck drug, after reviewing the results of nine studies. These studies, performed in women, demonstrated that consumers can easily understand the information on the label, properly determine whether the product is right for them, and use the drug appropriately..
WHEN DRUGS & CARS ARE MARKETED IN THE SAME WAY
Patient/consumer loyalty is of paramount importance for OTC drugs. In the same way a BMW owner is an owner for life, a properly managed an OTC drug can ensure a long lasting consumer support. The example of Brufen® (ibuprofen) is very demonstrative. Brufen® is a pain killer with anti-inflammatory activity. The patent expired years ago and the company switched the drug from delivered under prescription to OTC segment. Additionally there are many formulations offering patients a broad range of treatment options. The added value given by the Brufen Brand Equity is so good that global sales are still progressing, 40 years after launch.
The pharmacist role is changing as supermarkets are now beginning to operate “para pharmacies”. This enables them to enter this lucrative market by selling a wide range of OTC brands along with diapers, Colgate, dermo-cosmetics, etc…
As recently stated by Michel-Edouard Leclerc, owner of the supermarket chain Leclerc: “Today there is no real competition between pharmacies. The difference in products pricing is never more than the double, consequently (by creating para-pharmacy departments in our stores) we are trying to stimulate this sector, pro-actively”

Comments

Cristinel Manager December 26, 2013 - 4:49 pm

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