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To: Icebrg who wrote (9976)	1/14/2004 8:17:10 AM
From: Icebrg	Read Replies (1) \| Respond to of 52153

Growing Popularity of Over-the-Counter Allergy Medications Puts Prescription Products Under Intense Price Pressure Wednesday January 14, 8:05 am ET PALO ALTO, Calif.--(BUSINESS WIRE)--Jan. 14, 2004--Modified healthcare coverage with increased co-payments and other disincentives is decreasing demand of high-priced prescription products by shifting consumer interest to lower-cost therapies such as over-the-counter (OTC) and generic products. The prescription-to-OTC switch of Claritin has significantly lowered the prices of OTC products, triggering formulary exclusion of the more expensive prescription alternatives, creating further price pressures. New analysis from Frost & Sullivan (www.healthcare.frost.com), U.S. Anti-Allergic Therapies Markets, reveals that this market accrued revenue of $7.30 billion in 2003 and is poised to expand to $11.19 billion in 2010. If you are interested in an analysis overview which provides manufacturers, end-users and other industry participants an overview, summary, challenges and latest coverage of the U.S. Anti-Allergic Therapies Markets, then send an e-mail to Danielle White - Healthcare Media Relations Executive at dwhite@frost.com with the following information: Full name, Company Name, Title, Contact Tel Number, Contact Fax Number, E-mail. Upon receipt of the above information, an overview will be e-mailed to you. Many insurance plans currently require higher co-payments for prescription products when generic ones are available. Others are completely ceasing reimbursement of prescription drugs, particularly for non-life threatening conditions such as allergies. "Consumers' out of pocket expenses for prescription medications has risen by more than 46 percent, making high-priced products extremely difficult to market unless there is clear indication of their unique benefits," explains Frost & Sullivan Pharmaceuticals Analyst Team. One particular antihistamine suppresses symptoms of indoor and outdoor allergies and is suited for even 2-year old patients. Longer lasting formulation and the introduction of combination products such as allergy-sinus or allergy-headache products may also justify the high prices and offset the shift to OTC and generic products. Manufacturers are also undertaking product line extensions such as pediatric usage to mitigate the switch to OTC medications. Focus is also on facilitating ease of use, thereby influencing chewable, syrup, and reditab formulations. Successful product differentiation and formulary inclusion is possible if marketing operations are built around a collage of strong physician sales campaigns, highly effective direct-to-consumer advertising, and a low-cost strategy. Discount coupons are also likely to be an important promotional tool for prescription drugs since consumer rebates, particularly during the allergy season, drive sales by offsetting increasing co-payments. Prescription medications are able to actively promote their benefits, due to heavy advertisement budgets that give them a competitive edge over OTC and generic counterparts where product differentiation becomes difficult. Thereby proving that improved performance and value added benefits could replace the advantage of competitive prices. The launch of the generic Flonase, priced at a discount of 50 percent, is likely to put pressure on prescription corticosteroid prices, insurance reimbursements, and marketing strategies of competing brands. "Greater patient education regarding benefits of corticosteroids may prevent discontinuation by the majority of users as they shed preconceived notions of its complex dosing and inefficiency," notes the analyst. "This reduces patients' reliance on OTC products." Encouraging signs of growth is evident from development trends in the corticosteroid market such as the investigation of "soft" corticosteroids that offer reduced risk of adverse reactions and second-generation corticosteroids for curing asthma that could subsequently be extended to treatment of allergies.