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The Value of Me-Too's in the Context of OTC Switches

At Windhover's annual Marketing Pharmaceutical Innovation (MPI) conference in November, industry executives wrestled with an emerging dilemma -- how to win managed care's support for drugs that exhibit only minor improvements to existing products, while new over-the-counter (OTC) options surface.

Given the extraordinary profits of prescription drugs, over-the-counter (OTC) strategies typically receive little attention. All that's changing. The upcoming OTC launches of loratidine (Claritin) and omeprazole (Prilosec) are bringing into sharp relief the strategic collision of insurers and drug companies, sparking a national debate on drug affordability and clinical value, noted speakers at Windhover's Marketing Pharmaceutical Innovation (MPI) conference, held in Philadelphia in November.

Faced with double-digit increases in drug spending, managed care companies are looking aggressively for opportunities to trim the use of...

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