Heartburn drugs are among the most widely prescribed medications
in the United States, producing more than $13 billion in sales in
2004. Yet America’s heartburn problem is turning out to be
much more frequent than Proctor & Gamble--which markets popular
heartburn drug Prilosec OTC--expected. It seems supplies of Prilosec
OTC have fallen considerably short of consumer demand.
In light of this underestimation, Proctor & Gamble and its
partner AstraZeneca, a British drug company that owns the rights
to Prilosec OTC, are working to increase production and rectify
the shortage. However, many pharmacy shelves remain void of the
drug, and replenishment is not expected to take place until at least
April 2005.
Effects of the Prilosec Shortage
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AstraZeneca’s bottom line has improved: The drug company
has increased sales of Nexium, a more expensive prescription
heartburn drug it also sells. In fact, the two drugs are fundamentally
identical, except that Nexium costs more than five times the
amount Prilosec OTC does.
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On the other hand, the shortage has been costly for health
plans whose patients have turned to prescription drugs to cure
heartburn.
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And for consumers, the shortage serves as an inconvenience
more than a crisis, as heartburn is not a fatal condition and
can be treated via other means.
Moreover, doctors and patients who seek a reliable supply of Prilosec
or Nexium can get it only with a prescription. This is because in
2003 the Food and Drug Administration decided to allow AstraZeneca
to continue selling prescription Prilosec alongside Prilosec OTC--though
they contain the same amount of medicine (20 milligrams of omeprazole)--because
patients are not advised to take Prilosec OTC for more than two
weeks at a time without a doctor’s supervision. This decision
gave AstraZeneca and Proctor & Gamble three years to sell Prilosec
OTC without competition; therefore, the OTC version will not face
any generic competition until 2006.
Spartanburg
Herald-Journal March 2, 2005
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