Tylenol gets ‘precise’
NEW YORK McNeil Consumer Healthcare recently parlayed its Tylenol brand franchise into external analgesics.
Labeled Tylenol Precise, McNeil introduced two SKUs into the external analgesic space — a patch and a cream. The air-activated heat therapy will go up against Pfizer Consumer’s Thermacare, which is experiencing a resurgence in sales under its relatively new stewardship (Wyeth Consumer, now part of Pfizer, had purchased the rights to Thermacare from Procter & Gamble two years ago).
Both the Tylenol Precise cream and Tylenol Precise patch retail for around $7.99.
Thermionics sales heat up
SPRINGFIELD, Ill. —Thermionics’ ThermiPaq products, which now sport an eye-catching yellow “Control Your Pain!” panel as part of a new graphics package, has been a significant driver of growth within the heat/ice packs segment of late.
For the 52 weeks ended Aug. 8, Thermipaq sales were up 27.2%, reaching $6.1 million across food, drug and mass (minus Walmart) outlets, according to SymphonyIRI Group data. That growth is outpacing the category as a whole, which currently is trending up 6.1%.
In addition to rolling out a new graphics package, Thermionics has been positioning its product line against the chronic pain shopper as an incremental opportunity for retailers. According to recent Thermionics research, 80% of consumers who are treating chronic pain not only purchase multiple solutions across internal analgesics, external rubs, heat/ice therapy and body support devices, but they also shop these sets on a regular basis in search of their own personal pain-relieving regimen of products. There’s an incessant need to find a new or different solution, Thermionics noted, that’s driving consumers toward external analgesic items. That may make for an opportunity to establish a chronic-pain management destination center within the self-care space, the company added, much like there is a destination center at many retailers focused around diabetes-related products.
WASHINGTON Drug Store News, for the simple reason that the change actually hurts the people health reform was supposed to help—patients looking to save money on healthcare costs. —The new prescription requirement for over-the-counter medicines under flexible spending accounts, part of the new Affordable Care Act, may amount to bad medicine, many industry pundits have told
And the ramifications of that simple requirement also will be felt across the retail pharmacies that those in search of healthcare savings patronize.
No matter how you slice it, consumers are looking at increased costs associated with using FSA plans under the new Affordable Care Act. It’s not that there will be any incremental lift in the number of practitioner visits, because no one really believes a consumer now will schedule a doctor’s appointment for the sole purpose of getting a prescription for an OTC. Similarly, no one expects a consumer not to follow through on an intended OTC purchase because it’s no longer reimbursed under FSA accounts without a prescription. But consumers no longer will be able to save against all of those acute care needs for which many consumers never really consult a family practitioner—minor diarrhea or stomach upset, for example, or cold symptom relievers.
Consumers also will be buying more OTC medicines going forward, whether they have an FSA account or not. “The biggest driver of OTC over the next few years [is] going to be individual insurance policy holders with high deductible insurance plans,” said Paul Keckley, executive director of the Deloitte Center for Health Solutions.
For those consumers who do consult their doctors about appropriate therapies, there may be an incremental lift in the number of appropriate prescription-only therapies prescribed to these patients versus the number of appropriate nonprescription remedies they may have otherwise taken on their own. For healthcare payers, that means a potential rise in covered costs, as prescription remedies by and large are more expensive than their OTC counterparts. And for retailers, this has the potential of shifting some of their business from the margin-friendly front-end to the paper-thin margins generated across their prescription sales.
For those consumers who do successfully follow through with a prescription for a nonprescription medicine, there’s the cost associated with adjudicating that prescription, a cost that many retailers expect to shoulder on their own. “About 30% of PBM formularies will actually cover an OTC drug… so the consumer will have just a co-pay,” said Jeff Beadle, executive director of SIGIS, an association that helps retailers manage FSA-eligible products through their POS platforms. “It seems that most merchants don’t charge a dispensing fee on those [OTC transactions].”
What’s more, at least in this first year of the rule changes, consumers will have less of a handle on what their actual annual health-care expenditures are. This will be the last year consumers can do any kind of end-of-the-year medicine-cabinet loading on non-prescription remedies in an effort to realize the full value of their FSA accounts. FSA accounts remain use-it-or-lose-it within one calendar year, so if a consumer overestimated his or her annual spend, at the end of 2011 he or she will be left with less-convenient measures of draining that FSA account, like scheduling an eye care appointment or doctor’s visit right in the middle of the hustle and bustle of holiday season.
Categories no longer eligible without a prescription
|Allergy and sinus medicine|
|Anti-itch and insect bite remedies|
|Baby rash ointments/creams|
|Cold sore remedies|
|Cough-cold and flu medicines|
|Feminine antifungal/anti-itch medicines|
|Motion sickness medication|
|Sleep aids and sedatives|