Prilosec should be available without a prescription by July 2002, Procter & Gamble President/CEO A.G. Lafley told analysts during a June 15 teleconference.

AstraZeneca, which manufactures Prilosec for the Rx market, has refocused its direct-to-consumer strategy toward Nexium, a next-generation proton pump inhibitor approved by FDA in February, and away from Prilosec.

The company's move to completely halt Prilosec DTC ads this year likely reflects its desire to switch current users to Nexium rather than to OTC Prilosec, which would be marketed by P&G.

AstraZeneca committed more money to consumer ads for Prilosec in 2000 than the total spent on the three leading OTC digestive aid drugs, according to New York based-Competitive Media Reporting. Advertising efforts for Nexium in 2001 are likely to at least match last year's level for Prilosec.

DTC ad spending for Prilosec in 2000 amounted to $107.5 mil., a 34.1% increase over 1999. By contrast, the combined spending for J&J/Merck's Pepcid AC, GlaxoSmithKline's Tums and Pfizer/Warner-Lambert's Zantac 75 equaled $93.4 mil., CMR data show. Pepcid AC topped CMR's digestive aids and antacids category with $38.8 mil. in spending, a 10.4% decrease from 1999.

All but a handful of OTC drugs in the pain remedy, digestive aid and cough/cold categories experienced declines in ad spending during 2000 (see chart: Leading OTC Brand Advertising).

Although AstraZeneca and P&G were rebuffed in their first attempt to switch Prilosec's status, the companies have been in continuous negotiation with FDA since the advisory panel meeting (¹ Also see "Prilosec GERD Indication OTC Appropriateness Debated At NDAC Meeting" - Pink Sheet, 23 October, 2000. and ² Also see "OTC Prilosec For Chronic Use Needs Explicit Labeling, NDAC, GDAC Advise" - Pink Sheet, 30 October, 2000.).

Nonprescription Prilosec would place added pressure on the OTC H2 antagonists - Pepcid, Zantac and GlaxoSmithKline's Tagamet HB - which have suffered due to private label competition. All three drugs were supported by less advertising in 2000 than 1999.

In the allergy/cold segment, Pfizer/Warner-Lambert's spending for Benadryl jumped 14.4% to $30.4 mil. in 2000, only to be dwarfed by Rx drugs such as Schering-Plough's Claritin, which enjoyed $114.7 mil. in ad backing last year.

Prilosec OTC Launch By July 2002 Predicted By P&amp;G's Lafley

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Prilosec OTC Launch By July 2002 Predicted By P&G's Lafley