Chapter 2: Why Switch? Evaluating the Value of Switch Candidates
18
When considering categories that do not
exist OTC today, another important factor to
consider is whether the drug treats a (miserable)
symptom that consumers want to eliminate or
a chronic condition that presents with (virtu-
ally) no symptoms. Pfizer announced in 2015
that it was discontinuing efforts in the US to
switch Lipitor (atorvastatin), sales for which had
peaked at over $13 billion in 2006 prior to patent
expiration in 2011.19 While greater treatment of
high cholesterol would have a tremendous public
health benefit, the Centers for Disease Control
and Prevention (CDC) reports that of the 93
million US adults who have high cholesterol,
slightly more than half (55%) who could benefit
from medicine, are currently taking it.20 High
cholesterol has no symptoms, and treatment is
a preventative measure. Previous efforts in the
UK to switch the cholesterol medication Zocor
(simvastatin) from prescription-only to phar-
macy-only (2004) did not result in commercial
success while generic versions remain available,
the branded product was discontinued in 2010
due to low sales.21
Although treating high cholesterol may
not be highly motivating for OTC consumers,
other OTC categories that do not exist today
could generate tremendous interest. One of
these potential categories is erectile dysfunction
(ED). ED affects 50% of men at age 50, and that
number increases with age.22 Sanofi signed a
deal in 2014 to switch Eli Lilly and Company’s
drug Cialis (tadalafil) to treat ED.23 Access to
an OTC ED medication could improve access
while reducing distribution of counterfeit or
fake ED products. ED has the potential to be
a “blockbuster” OTC category because existing
prescription medications treat a highly both-
ersome symptom and can be highly efficacious
for appropriate patients, whose numbers are
significant. Nonetheless, the rise of telemed-
icine has enabled more consumers to access
ED medications as well as oral contraceptives.
Future switches, which will need to overcome
Table 2-5. US Retail Sales by Year of Allergy Products (NSAs versus INSs)
Source: Data courtesy Symphony IRI.
Table 2-6. Dollar Share of Retail Sales in Drug Stores (Branded Products Versus Private Label
Smoking Cessation Products)
Dollar Share Dollar Share
Nicorette 55.5% Nicoderm CQ 49.9%
Private Label Gum 43.8% Private Label Patches 45.9%
TOTAL 99.3% TOTAL 95.8%
Source: DrugStore Management 2020-2021 Annual Drugstore State of the Industry Report.
18
When considering categories that do not
exist OTC today, another important factor to
consider is whether the drug treats a (miserable)
symptom that consumers want to eliminate or
a chronic condition that presents with (virtu-
ally) no symptoms. Pfizer announced in 2015
that it was discontinuing efforts in the US to
switch Lipitor (atorvastatin), sales for which had
peaked at over $13 billion in 2006 prior to patent
expiration in 2011.19 While greater treatment of
high cholesterol would have a tremendous public
health benefit, the Centers for Disease Control
and Prevention (CDC) reports that of the 93
million US adults who have high cholesterol,
slightly more than half (55%) who could benefit
from medicine, are currently taking it.20 High
cholesterol has no symptoms, and treatment is
a preventative measure. Previous efforts in the
UK to switch the cholesterol medication Zocor
(simvastatin) from prescription-only to phar-
macy-only (2004) did not result in commercial
success while generic versions remain available,
the branded product was discontinued in 2010
due to low sales.21
Although treating high cholesterol may
not be highly motivating for OTC consumers,
other OTC categories that do not exist today
could generate tremendous interest. One of
these potential categories is erectile dysfunction
(ED). ED affects 50% of men at age 50, and that
number increases with age.22 Sanofi signed a
deal in 2014 to switch Eli Lilly and Company’s
drug Cialis (tadalafil) to treat ED.23 Access to
an OTC ED medication could improve access
while reducing distribution of counterfeit or
fake ED products. ED has the potential to be
a “blockbuster” OTC category because existing
prescription medications treat a highly both-
ersome symptom and can be highly efficacious
for appropriate patients, whose numbers are
significant. Nonetheless, the rise of telemed-
icine has enabled more consumers to access
ED medications as well as oral contraceptives.
Future switches, which will need to overcome
Table 2-5. US Retail Sales by Year of Allergy Products (NSAs versus INSs)
Source: Data courtesy Symphony IRI.
Table 2-6. Dollar Share of Retail Sales in Drug Stores (Branded Products Versus Private Label
Smoking Cessation Products)
Dollar Share Dollar Share
Nicorette 55.5% Nicoderm CQ 49.9%
Private Label Gum 43.8% Private Label Patches 45.9%
TOTAL 99.3% TOTAL 95.8%
Source: DrugStore Management 2020-2021 Annual Drugstore State of the Industry Report.