Pharma's Focus on Over-the-Counter Drugs

" All right some cash strapped consumers are passing up doctors' offices and over the counter drug makers may be reading more the profits this led big pharma to think about. Which medication should be switched from prescription drugs to generally cheaper. Over the counter OTC is is known in the industry Brent Saunders is the president of consumer health care if Schering-Plough. And he joins us now to talk about this move Brent thank you for coming on thank you. Schering-Plough have one of the highest percentages of prescribed or prescription only drugs still -- right that's correct and now you are moving more and more to over the counter like Claritin and other. Why the move and is that good for consumers but bad for sharing plows balance sheet now actually it's it -- to win win and the reason we do it is it's a natural life cycle expansions to take a drug like clarity which used to be a prescription drug for allergies. As the pattern was about to expire on that particular drug we will to make it an OTC or over the counter. Product. And that took it from being. Multi billion dollar drug to a several hundred million dollar drug. But in absence of doing that we would of lost sales completely of that truck. We have now sold since the patent expiry and the OTC switch close to three billion dollars worth of clarity. And so that's a win win on the other side of that issue that was the consumer. And the consumers now have access to. Claritin without having to go see a doctor take time off from work. And all the other things associated with getting the prescription you know just as a consumer none of journalists how do. Companies like viewers decide what goes over the counter I mean you you assume that when a drug is prescription only is especially for reason that you know there are side effects and you know it's a serious drug that needs to be prescribed by doctor -- seat on the counter and you think. Well have eight. Watered it down or who writes that call yeah you know we look for a couple things that not all prescription drugs are suitable for OTC switch. I think first and foremost we look for fit safe and effective drugs. We also look for drugs that are poor conditions that are self diagnosed. We look for drugs that can have a label with the average person can understand that indicate. How to use and then of course we look for drugs that are aren't subject to abuse. If you can find help for those attributes and drug then it becomes appropriate public -- more fits that criteria for Schering-Plough. Right now we we don't have many in our pipeline that are ready for switching but what we have been doing is working with a lot of other companies that don't have consumer healthcare divisions. To take their prescription drugs and switch them to OTC status one of the trends we've seen in pharmaceutical sales that companies are going warm Ortiz sort of mail order type programs putting less people in two. Pharmacies does that hurt you at all no it doesn't it is that there's a I think -- movement. Patient empowerment that we're seeing. Consumers want to treat themselves they look to the web things like WebMD and others to. To two help understand the medical conditions and -- OTCs -- first line therapy so they they tend to. Want to go to the drugstore. Do what their first point issues that doesn't work then go seek medical treatment. Barbara it's on -- head of the consumer health care Schering-Plough right at the pleasure thanks for coming in thank you for having the art let's get back."