Doctor Recommendations Of Over-The-Counter Drugs Boost Consumer Loyalty

Uniondale, NY, September 24, 2002 - Prescription (Rx) drug manufacturers aren't the only drug companies marketing products to physicians. Over-the-Counter (OTC) drug makers are discovering that a doctor's word can be a powerful sales tool as well.

"Our consumer tracking shows that patients who were recommended an OTC treatment by their doctor purchased more per year than patients who purchased OTCs without a recommendation," said Fariba Zamaniyan, director, Ipsos PharmTrends174.

"Doctor recommendations are influencing consumer loyalty and are therefore resulting in sales growth. Patients have faith in what doctors recommend to them and our findings show they are likely to continue to buy a recommended product."

Doctors can impact market share by influencing patient treatment decisions. In categories where both OTC and Rx treatment options exist, competition is intense. Marketing to doctors can help boost OTC brand awareness and encourage patient trial and product sales. Categories where this is relevant include -but is not limited to- allergies, arthritis, pain, and osteoporosis.

Marketing to doctors can also increase brand loyalty when a supplement to Rx therapy is available. Examples of such supplements include aspirin, and vitamin and mineral supplements.

"Today, there are more competitors with more at stake and more to gain," noted Fariba Zamaniyan of PharmTrends174.

Since 1997 -- when branded direct-to-consumer campaigns from Rx drug manufacturers were first allowed, -- OTC manufacturers have responded with their own professional marketing programs.

According to PharmTrends174 syndicated tracking data, the percentage of doctors recommending to a patient an OTC drug to remedy, prevent or supplement therapy has increased from 48% in 1998, to 55% so far this year.

Leading categories where OTC marketing to doctors is taking place include Heart-Health/Hypertension, Acid Indigestion/GERD, Osteoporosis, Arthritis (Rheumatoid and Osteo) and Elevated Cholesterol. Meanwhile, Rx drug competitors are beginning to use more traditional, packaged goods style marketing campaigns (for instance, direct-to-consumer advertising) which OTC manufacturers have been using for decades. OTC drug manufacturers are switching to marketing to physicians to increase sales and build brand loyalty.

Top OTC `recommended by doctor' categories

Level of OTC vs. Rx presence in leading OTC `recommended by doctor' categories

Categories including Acid Indigestion/GERD and Osteoporosis have benefited substantially from doctor recommendations. The Heart-Health/Hypertension category, however, has only a small percentage of households purchasing OTC drugs, mainly consisting of aspirin therapy to help remedy or prevent heart attacks. Nevertheless, it also represents a growing buyer segment (+25% from year ending June 2001).

Purchasing of some OTC drugs has risen dramatically following doctor recommendations.

• Bayer Aspirin, used as a supplemental treatment of hypertension and to prevent heart attacks and maintain heart-health, has realized a significant increase in the number of households purchasing Bayer Aspirin because of a doctor's recommendation across the 12 month period ending June 2002 vs. 1998 (+90% growth).
• Tylenol Arthritis, used to remedy the pain associated with Arthritis, has increased among patients receiving a recommendation.
• Tums, used to remedy acid indigestion with the added benefit of calcium to reduce the degree of bone deterioration associated with Osteoporosis, also showed an increasing number of buyers who reported purchasing Tums because of a doctor's recommendation (+29% from 1998 levels).

"These data indicate that the professional marketing push by OTC drug manufacturers is influencing doctors, who, at their turn, are impacting consumer behavior," said Ms. Zamaniyan of PharmTrends174.

Top OTC Drugs Purchased by Consumers Because of a Doctor Recommendation

Average Buying Rates per Year Are Higher Among Those Patients Who Received a Doctor Recommendation

OTC drugs recommended by doctors consistently boasted more patient purchases and stronger loyalty. For example, patients who had received a recommendation from their doctors to buy Pepcid AC/Complete bought 56% more of the OTC product in the 12-month period ending June 2002, than those who did not receive a recommendation.

PharmTrends Methodology

PharmTrends174 reveals consumer purchase behavioral insight on a longitudinal basis from a panel of 16,000 households -- balanced and representative of the U.S. Census composition. PharmTrends174 monitors the prescriptions filled and non-prescription drugs purchased for each family member with Ipsos-NPD's panel of households who report their purchases every month. Providing prescription and non-prescription purchase activity can reveal the tradeoffs consumers are making in their treatment regimens.

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