Competition stiff among OTC anti-fungals

Drug Store News, Nov 6, 1995 by Wendy Friesen

When the Food and Drug Administration first cleared the way in late 1990 for topical anti-fungal medications to be sold OTC, it opened the door to a lucrative market that raked in $255 million in retail sales last year alone.

Today it is a category that has perhaps already leveled off in growth and innovation, but is notable for its degree of competition.

Said a spokesperson for a southern drug chain, "These products work, and that's the down side as well as the up side. There's really nothing to change or improve. Except for the pre-filled applicators or the cream/insert combination packs, no one is coming up with anything to invigorate the category."

Observers note that consumers are fairly evenly split between brand loyalty and price considerations in their purchasing decisions. "The typical customer is not experiencing her first yeast infection," said a spokesperson for an industry leader. "So she can go one of two ways in deciding which product to buy. She can choose the brand her doctor initially recommended because she knows from experience that it works. Or, she can shop for price or promotions, knowing from anecdotal evidence that, basically, every brand works."

Statistics reflect this brand/price dichotomy. While category leader Monistat 7, the second topical antifungal to receive FDA sanction for OTC sales, leads the market comfortably with a 43 share and high brand recognition, relative newcomer Mycelex-7 last year captured, and has retained, the No. 2 spot with an 18 share that appears to be on the rise.

Natural remedies

Homeopathic treatments, which, as little as five years ago, were the only available OTC option, have more than held their own despite stiff competition for customers.

"We were concerned for Yeast-Gard's future when the market opened up but, if anything, the desire for homeopathic treatments has grown over the years," said a spokesperson for Lake Pharmaceuticals, makers of Yeast-Gard homeopathic preparation and Femizol 7. "Our sales are up about 17 percent this year in retail dollars and 18 percent in units." In an otherwise flat category, this natural sector has been recognized as a growth area, and a number of other companies are expressing interest in homeopathic products.

Meanwhile, the premise of the OTC antifungal revolution, which has allowed women to choose their own cures without consulting their doctors, is being challenged aggressively by Pfizer, the maker of Diflucan (a single-dose oral antifungal prescription tablet otherwise known by the generic name of fluconazole).

Pfizer is targeting OTC competition with a direct-to-consumer campaign that stresses the product's perceived advantages.

"Our product is reinvigorating the market and giving consumers another option," said Alan Litwack, product manager for Diflucan. "Research indicates that women prefer a one-dose tablet to a week of messy medication." Others point out that one fluconazole tablet effects cure, while many women fail to use OTC preparations for the full 7-day course of treatment, risking reinfection.

Skeptics counter that fluconazole actually effects a cure after three days. In the interim, they suggest, applications of OTC creams often are recommended by physicians to alleviate symptoms.

"The customer has finally been liberated from going to the doctor," said a West-Coast buyer. "Why would she want to get back into that pattern just for a one-shot cure? We have seen no impact on our OTC sales, just anecdotal stuff."