A growing “hot-button” issue in the healthcare packaging space concerns the increasing number of drugs switching from prescription-only to over-the-counter products. Such switches can push patent expiration dates further into the future, and trigger innovation in product packaging as manufacturers address package design, labeling, validation, regulatory requirements, and other issues.
KlineBlog recently reported, “Rx-to-OTC switches continue to be an engine of growth for the OTC industry, adding new users to the OTC market from the prescription market. In fact, the top 10 Rx-to-OTC switch brands during 2008 have grown by 5.8% compared with a growth rate of 2.4% for the overall OTC industry over the same time frame. …With all the competition from private labels and pressure from retailers for brands to offer more value, switches will remain a way for branded marketers to expand the price points, margins, and profitability of their OTC portfolios. Continued growth of the OTC market will be largely dependent on future Rx-to-OTC switches.”
Procter & Gamble's Prilosec is a product whose move into the OTC market exemplifies how the packaging change can be executed successfully, be sustainable/environmentally friendly, and be sound from an economic perspective.
Another way pharmaceutical firms have fought impending patent expirations is through merging with or buying biotech/biopharmaceutical firms.
Datamonitor notes, “Within the pharmaceutical sector, vaccines were traditionally regarded as low-margin products. However, with the decline of Big Pharma's traditional small-molecule blockbuster model and a marked swing toward biologics, vaccines have regained appreciation as generics-proof revenue drivers. This change of tack has not come without inherent challenges, though. As vaccines move into indications and patient populations outside traditional target groups, improved technologies are required to overcome the hurdles associated with these novel challenges. Vaccine adjuvants are thus seen as a crucial tool to expand the vaccines market.”
According to MedicineNet.com, “An adjuvant is a substance that helps and enhances the pharmacological effect of a drug or increases the ability of an antigen to stimulate the immune system.”
